HCMC – The appraisal and issuance of Vietnam’s forest carbon credits for the 2021–2022 period are expected to be completed in the second quarter of 2026, paving the way for submissions for the next phase (2023–2025) in the third quarter of this year.
The timeline has been recently shared by Tran Quang Bao, director of the Forestry and Forest Protection Department under the Ministry of Agriculture and Environment, regarding progress in finalizing the legal framework for forest carbon absorption and storage services. The ministry is currently coordinating efforts to draft a decree governing these services, aimed at establishing a comprehensive legal corridor for localities and forest owners to implement in practice.
Notably, the draft decree is being revised to further decentralize procedures for issuing forest carbon credits to local authorities, simplifying administrative processes and accelerating implementation.
The issuance of the decree is expected to be the final piece in completing the legal framework for the forestry sector, following the establishment of regulations for five other forest environmental services. Once operational, the forest carbon market is expected not only to help Vietnam fulfill its international commitments to reduce greenhouse gas emissions under its Nationally Determined Contributions (NDCs), but also to generate new revenue streams and improve incomes for forest growers and protectors.
On international cooperation, Vietnam has signed a letter of intent with Emergent to transfer 5.15 million forest carbon credits in the Central Highlands and South Central regions. With a minimum expected price of US$10 per credit, the entire volume will be retained for inclusion in Vietnam’s NDC accounting.
Technical and institutional conditions are now in place for Vietnam to access payments from international funding mechanisms such as the Green Climate Fund and the LEAF Coalition once the forest carbon decree is approved by the prime minister.
