Vietnam Could Earn US$200 Million Annually From Carbon Credit Trades

Vietnam is capable of selling some 40 million carbon credits for a revenue of 200 million USD annually, the country’s 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.

The Vietnam News Agency says in a report that the country is set to transfer to the forest financing organisation 5.15 million tonnes of carbon dioxide that cost at least US$10 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 for 2024, 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 hectares of forest, a coverage rate of 42%. The forestry production value grows stably at a rate of 4.6% and revenue from environmental protection services nears 11 trillion VND (US$445.5 million).

Last year, the Southeast Asian nation, for the first time, sold more than 10 million carbon credits for over US$50 million, ranking it among the top 60 countries worldwide with the highest capacity for the carbon trade.