Vietnamese localities expand efforts to develop carbon credit market


Coconut forest in Vietnam. (Photo: iStock)

Localities throughout Vietnam are undertaking activities to develop the carbon credit market.

The advancement of the carbon credit market is seen as a tangible stride towards policies aimed at reducing greenhouse gas emissions, allocating emission quotas, trading carbon credits, and fostering green financial resources for Vietnam.

Nguyen Van Duan, deputy director of the Forest Protection Department in Quang Binh province, said that in addition to harnessing the advantages of natural forests, the province plans to broaden its scope, assess suitable areas, and gauge the potential for greenhouse gas emission reduction via the implementation of new forest planting initiatives adhering to international standards. This includes upgrading small wood plantations to larger ones to bolster forest carbon reserves for the future.

He also mentioned that the province would hold meetings with relevant organizations and individuals to discuss the assessment outcomes and suggest activities for the development of forest carbon credit projects.

Currently, the province has more than 590,000 hectares of forest, including over 469,000 hectares of natural forest. The forest coverage rate is at 68.7% and the quality of forest is relatively good.

During the 2023-2025 period, Quang Binh province received VND 235 billion from carbon credit sales, thus providing income for almost 11,000 forest owners, contributing to sustainable forest management and protection.

In the meantime, HCM City has been chosen as the first locality to trial the carbon credit trading mechanism.

The city will execute prospective projects aimed at generating carbon credits, including the conversion of streetlights to LED, the installation of rooftop solar systems on public and private properties, and the integration of energy-saving devices into buildings.

Under the scheme, the Department of Natural Resources and Environment of the city will partner with the Department of Finance to conclude the trial project on the financial structure for executing actions to reduce greenhouse gas emissions through carbon credit trading and offsetting mechanisms. Subsequently, they will submit it to the People's Committee of the city.

Moreover, they will collaborate with the Ministry of Industry and Trade, Ministry of Transport, Ministry of Agriculture and Rural Development, and Ministry of Natural Resources and Environment to determine the contribution ratio of greenhouse gas emission reduction and absorption within the city's jurisdiction towards the national target for reducing emissions before participating in carbon credit trading.

Rice field at Ben Tre province, Vietnam. (Photo: iStock)

In the Mekong Delta province of Ben Tre, it has the biggest coconut plantation area in Vietnam as of today, covering about 78,000 hectares.

Researchers suggest that the province has the capacity to store between 1.9 to 5.8 million tons of CO2, excluding crops grown under coconut trees.

Recognizing the huge potential of the agriculture sector to engage in the carbon credit market and transition towards a green, circular economy, the provincial agriculture sector is prioritizing the ongoing development of eco-friendly practices, circular economy initiatives, low-carbon emissions strategies, and environmentally sustainable, climate-resilient agriculture.

The provincial Department of Agriculture and Rural Development has partnered with the provincial Department of Natural Resources and Environment along with relevant agencies to evaluate the province's potential for involvement in the carbon market.

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