Vietnam’s forest carbon credits earn $51.5 million

Vietnam has successfully generated $51.5 million by transferring 10.3 million tonnes of CO₂ credits to the World Bank, according to the Forestry Department. This marks a significant milestone in the country’s emerging forest carbon trading initiatives.

Landscape view of Cuc Phuong National Park in Vietnam. AI generated picture.

The transfer is part of the Emission Reductions Payment Agreement (ERPA), signed in October 2020, aimed at reducing greenhouse gas emissions through forest conservation. Under ERPA, Vietnam has the option to increase the transfer by an additional 5 million tonnes, further boosting potential revenue.

The country's forestry sector has been working to reduce CO₂ emissions, targeting a reduction of 39.31 million tonnes by 2025 and 79.1 million tonnes by 2030. Between 2014 and 2018, Vietnam’s forests contributed to reducing and absorbing a combined 56.7 million tonnes of CO₂.

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Despite the progress, the legal framework for forest carbon trading remains underdeveloped. The Forestry Department is working to finalise the necessary regulations to facilitate broader participation in both domestic and international carbon markets.

Several provinces, including Quang Nam, Son La, and Lao Cai, are eager to pilot forest carbon credit projects. Quang Nam, in particular, is pushing forward with plans to develop its natural forests, which currently sequester around 1 million tonnes of carbon annually.

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This initiative is part of Vietnam's broader strategy to establish a carbon credit trading platform by 2025, creating sustainable financial resources for forest protection and sustainable development.

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