(Source: mekongasean.vn) According to the Ministry of Natural Resources and Environment, from now until the end of 2027, Vietnam will accelerate the development of regulations on carbon credit management, quota exchange activities and operating regulations. exchanges.
Forest carbon credit exchange projects still face many difficulties
Along with many other countries around the world, Vietnam joined the “Glasgow Leaders Declaration on Forests and Land Use” at COP26 and became a “Partner of Forest and Climate Leaders” at COP27.
At the workshop on post-COP27 results and a roadmap to build a forest carbon market in Vietnam”, on the morning of December 20, Mr. Tran Quang Bao, Deputy Director of the General Department of Forestry, said that the COP27 climate change commitments has aimed to solve one of the five biggest global challenges, which is deforestation and forest degradation.
As a country with a large percentage of forest cover in the world, Vietnam’s forestry sector not only plays an important role in climate change adaptation and mitigation, but also contributes to socio-economic development. the general society of the country, especially with more than 25 million Vietnamese people living dependent on forests.
However, forest protection and development in Vietnam still faces many difficulties, especially when financial sources are unstable and only meet a small part of the actual needs of the industry.
Therefore, international cooperation to seek and diversify sustainable financial sources for the forestry sector is always considered a top priority. In particular, promoting cooperation in the development of solutions to mobilize financial resources through the development of forest carbon markets is an important task.
The carbon market has been promoted by the international community as one of the effective financial mechanisms to reduce emissions from deforestation and protect forests. In the period 2017 – 2019, the world has recorded positive signs for the development of the forest carbon market with nearly $400 million generated from global voluntary carbon market transactions.
At least $5.9 billion has been paid for forest carbon offset projects worldwide, and at least $1.3 billion has been increased disbursements or contracts by parties to support developing countries. development and protection of forests.
However, these transactions are not commensurate with the potential of the forestry sector and are heavily influenced by international regulations on the operation of carbon markets.
In Vietnam, according to Mr. Bao, the implementation of forest carbon credit exchange projects still faces many difficulties from technical issues, international negotiations to domestic guidelines and policies due to the domestic carbon market. has not been set up.
Accelerate the development of regulations for carbon credit management
Talking about the carbon market development roadmap in Vietnam, Mr. Nguyen Van Minh, Climate Change Department (Ministry of Natural Resources and Environment) said that from now until the end of 2027, Vietnam will develop regulations on management carbon credits, quota exchange activities and exchange operating regulations.
Along with that is the pilot implementation of the mechanism for exchanging and clearing carbon credits in potential fields and guiding the implementation of the mechanism for exchanging and clearing carbon credits, etc. From 2028 onwards, the operation will be organized. official carbon credit trading.
A carbon credit is a permit that allows each business establishment to emit CO2. Each claimed carbon credit is 1 ton of CO2, or 1 ton of other greenhouse gas equivalent to 1 ton of CO2, collectively known as 1 ton of CO2. Forest carbon credits are determined from the amount of CO2 generated. Forest owners can convert the forest area under management and protection into CO2 absorption, into carbon credits and can sell these credits in the carbon market through the mechanism of reducing greenhouse gas emissions. Carbon credits are also considered a new item created when implementing activities to reduce emissions or absorb greenhouse gases.
Agreements between countries and a new step on Article 6 at COP27 regulating the operating principles of the carbon market, have brought both opportunities and challenges for countries, including Vietnam. The design and implementation of an effective, efficient and fair forest carbon market will be realized in the near future.
“Which way should Vietnam apply to the forest carbon market to achieve its socio-economic development goals as commitments are a big issue that needs many policy makers to step in,” Minh emphasized.
Quang Nam is the first locality that has been approved by the Government to set up a pilot scheme for forest carbon credit business from reducing greenhouse gas emissions through combating deforestation and forest degradation, and sustainably managing forest resources. within 5 years (2021-2025).
According to calculations, with 680,000 hectares of forest, the coverage reaches 58.6%, of which there are 466,113 hectares of natural forests, with the ability to absorb more than 11.2 million tons of carbon in the period from 2018 to 2030. Quang Nam can earn about 5 million USD each year from selling forest carbon credits. Currently, there are 5 foreign companies registered to buy back forest carbon licenses/credits.
Previously, the North Central Region Emission Reduction Payment Agreement (ERPA) was signed on October 22, 2020 between the Ministry of Agriculture and Rural Development and the World Bank. With this agreement, Vietnam will transfer 10.3 million tons of CO2e emission reduction in the North Central region for the period 2018 – 2024 to the World Bank with a total amount of 51.5 million USD.
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