What are the conditions required for establishing a carbon credit market? How long does it take to finalize a carbon credit transaction? What is the price of a carbon credit? These are the questions that stakeholders in Vietnam, including government agencies, businesses and the community, need to answer. It takes an average of four years to complete the sale of two forest carbon credit projects in Vietnam to the World Bank (WB) and two international organizations, LEAF and Emergent. After a long period of development since 2005, the carbon credit market will operate under a pilot mechanism for three years, from 2025 to 2027, beginning early next year. It is expected to officially function starting in 2028. According to the Climate Change Department under the Ministry of Natural Resources and Environment, Vietnam has over 300 projects and programs registered. However, only 150 programs have been granted 40.2 million carbon credits. Two initial contracts In August 2023, the World Bank paid 80% of the contract value of US$51.5 million to the Ministry of Agriculture and Rural Development through the International Bank for Reconstruction and Development (IBRD). The remaining 20% was paid in early March this year, according to the Government news […]
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