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Friday, July 19, 2024

Vietnam earns VND1,200 billion from carbon credit sales

The Saigon Times

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HCMC – Vietnam has generated VND1,200 billion (around US$51.5 million) by selling around 10.3 million forest carbon credits, or 10.3 million tons of carbon dioxide, for the first time, according to the Ministry of Agriculture and Rural Development.

Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri shared this information at a conference held on December 27 to review the sector’s 2023 performance and discuss plans for 2024.

Tri said that this year marks a significant milestone for Vietnam as it successfully sold 10.3 million tons of carbon dioxide through the World Bank (WB) at a rate of US$5 per ton.

Vietnam’s Forest Protection and Development Fund has already received the initial payment of US$41.2 million from the WB and disbursed it to six north-central provinces for distribution to forest owners.

Among these provinces, Nghe An receives the biggest amount, at over VND282 billion, followed by Quang Binh with VND235 billion, Thanh Hoa with VND162 billion, and Ha Tinh with VND122 billion. Thua-Thien Hue and Quang Tri will receive VND107 billion and over VND51 billion, respectively.

Vietnam holds significant potential for carbon credit trading, thanks to its vast forested areas covering over 14.7 million hectares, equivalent to more than 42% forest coverage.

In February 2020, the Ministry of Agriculture and Rural Development signed an Emission Reduction Payment Agreement (ERPA) with the World Bank for the period from 2018 to 2024.

The north-central region, comprising provinces like Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua-Thien Hue, boasts 3.1 million hectares of forested land, with a forest coverage rate of 57.4%.

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