Vietnam capable of earning 200 million USD per year from carbon credit trade

March 04, 2024 | 15:31

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Vietnam is capable of selling some 40 million carbon credits for a revenue of 200 million USD annually, the Department of Forestry has calculated.

Vietnam capable of earning 200 million USD per year from carbon credit trade

Vietnam currently houses 14.79 million ha of forest, a coverage rate of 42 per cent. (Photo: vneconomy.vn)

Hanoi – Vietnam is capable of selling some 40 million carbon credits for a revenue of 200 million USD annually, the Department of Forestry has calculated.

It said the country has freshly signed an emissions reduction purchase agreement with Emergent, a non-profit intermediary engaging between tropical forest countries and the private sector to mobilise finance to support emissions reductions in deforestation. Accordingly, Vietnam is set to transfer to the forest financing organisation 5.15 million tonnes of carbon dioxide that cost at least 10 USD per tonne in the 2022-2026 period.

The Ministry of Agriculture and Rural Development has already put forth seven targets and 11 solutions for forestry work this year, with a focus on completing the national forestry planning and supporting firms involved in transition from forestry production to forestry business.

Vietnam currently houses 14.79 million ha of forest, a coverage rate of 42 per cent. The forestry production value grows stably at a rate of 4.6 per cent and revenue from environmental protection services nears 11 trillion VND (445.56 million USD).

Last year, the nation, for the first time, sold more than 10 million carbon credits for over 50 million USD, ranking among the 60 countries worldwide with the highest capacity for the carbon trade.

Vietnam seals major carbon credit deal, fetching $53 million

Vietnam has successfully executed a landmark transaction, selling 10.3 million tonnes of CO2 emission credits to the World Bank for nearly VND1.25 trillion VND ($52.74 million), as confirmed by the Ministry of Agriculture and Rural Development to the prime minister on December 28.

By VNA

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