Bamboo Capital afforestation arm joins global partners to tap carbon credit market

November 29, 2024 | 14:37
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BCG Eco, the afforestation arm of Vietnam’s Bamboo Capital Group, has signed an agreement with Singapore’s Capital Quantum and Corects, two leading entities in carbon credits and climate finance.

The collaboration will help BCG Eco scale up its carbon credit projects and connect with international markets, while also stepping up Bamboo Capital's sustainable development goals and contributing to promoting a green economy in Vietnam.

As the issue of climate change gains urgency, the development of carbon markets has emerged as a key tool to boost green transition. It was in this context that BCG Eco was established – to enhance environmental protection work, tap the carbon credit market’s potential, and promote environmental, social, and governance (ESG) initiatives.

BCG Eco’s main operations include forestry, forest care, and the nurturing of forestry seedlings. As an independent consultancy, it aims to offer comprehensive solutions for businesses looking to participate in the carbon credit market while expanding its sustainable development initiatives.

Bamboo Capital and BCG Eco have implemented specific strategies, from project development to seeking credible international partners towards jointly developing carbon credit projects.

All parties in the latest collaboration – BCG Eco, Capital Quantum, and Corects – have stated their commitment to building a sustainable and comprehensive carbon credit ecosystem.

Their goal is to create a closed-loop value chain, from developing carbon emission reduction projects to carbon credit transactions.

Under the agreement, BCG Eco will leverage the expertise and experience of Bamboo Capital in renewable energy and environmental sectors. It will take the lead in providing in-depth knowledge and consultancy on the carbon credit market standards in Vietnam.

The company will also produce high-quality carbon credits for sale in Singapore, while exploring opportunities in carbon credit trading markets in Vietnam, Singapore, and Laos.

Bamboo Capital afforestation arm joins global partners to tap carbon credit market
From left: Tan Bo Quan, Andy - CEO of BCG Eco, Anthony Lau Hong Kay - CEO of Corects, and Sofia Cao - CEO of Capital Quantum, sign a cooperation agreement in Singapore. Photo: Bamboo Capital

Capital Quantum is a pioneer in developing carbon credit platforms in Singapore. It is currently working closely with the Global Carbon Council (GCC).

Recently, together with its joint venture partner in the country, it signed a framework agreement with the Papua New Guinea Forestry Authority to implement Article 6.2 of the Paris Agreement – the UN framework convention on climate change.

Through its partnership with Capital Quantum, BCG Eco will benefit from international experience and advanced technologies that the former has developed through leading projects in Singapore.

The Singaporean firm will support BCG Eco and Corects in managing, monitoring, and reporting on carbon credits.

With Capital Quantum ensuring accurate and transparent measurement in accordance with international requirements, carbon credits from joint projects will meet necessary standards for international trading.

Corects (Carbon Offset and Renewable Energy Consultancy, Technology and Solutions) specialises in providing consultancy services for the development of carbon credit projects, as well as supporting certification and auditing processes.

With extensive experience in providing carbon credit consultancy and implementing carbon projects, it will play a crucial role in helping BCG Eco implement internationally compliant projects through advanced data analytics solutions.

It will also provide guidance for companies like BCG Eco on exploring new carbon markets and expanding trading capabilities.

The partnership with Capital Quantum and Corects marks an important step forward for BCG Eco in realising its development goals.

It is not only a commercial partnership but also a move that underscores Bamboo Capital's strong commitment to sustainable and green development, the group's release said.

Climate change is increasingly impacting people’s lives and destabilising economies. In response to the ongoing emergency, countries have initiated actions to reduce greenhouse gas (GHG) emissions and develop carbon credit markets. At COP 26 in the UK in 2021, Vietnam made its first commitment to achieve net-zero emissions by 2050.

This goal has been incorporated into the National Strategy on Climate Change for 2050.

Carbon credit markets are considered one of the most effective tools to help Vietnam achieve this target. Experts believe that developing carbon credit markets will bring economic benefits and help transition Vietnam from a “brown” economy to a “green” one.

The shift will not only enhance Vietnam's position on the global stage but also attract attention and investment from international organisations and businesses.

The Vietnamese carbon credit market is forecast to continue growing strongly, with a projected growth rate of up to 20 per cent due to pressures from international agreements such as the Paris Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Bamboo Capital afforestation arm joins global partners to tap carbon credit market
Forestry is considered a sector with the greatest potential for carbon credit development in Vietnam. Photo: Bamboo Capital

The "Carbon Market Development in Vietnam" project, currently under development, stipulates GHG emission reductions and ozone layer protection.

From 2028 onwards, Vietnam plans to operate a carbon credit exchange, connecting the domestic market with regional and global markets.

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By Thanh Van

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