Vietnam Poised to Earn $200 Million Annually from Carbon Credit Trade

79

The Department of Forestry in Vietnam has estimated that the country can sell approximately 40 million carbon credits annually, generating revenue of around $200 million. This calculation comes as Vietnam recently signed an emissions reduction purchase agreement with Emergent, a non-profit intermediary facilitating finance to support emissions reductions in deforestation.

Under the agreement, Vietnam will transfer 5.15 million tonnes of carbon dioxide to the forest financing organization from 2022 to 2026, with each tonne priced at a minimum of USD 10.

The Ministry of Agriculture and Rural Development has outlined seven targets and eleven solutions for forestry work in the current year. These include completing national forestry planning and providing support to companies transitioning from forestry production to forestry business.

Vietnam presently has 14.79 million hectares of forest, covering 42% of its land area. The forestry production value has been growing steadily at a rate of 4.6%, and revenue from environmental protection services has reached nearly 11 trillion VND (USD 445.56 million).

In 2021, Vietnam achieved a significant milestone by selling more than 10 million carbon credits, generating over $50 million. This accomplishment positions Vietnam among the 60 countries worldwide with the highest capacity for carbon trading.