Forest economics and carbon credit targets

Forest rangers guide people to plant forests to increase coverage and bring economic resources from forests.

Positive effects

According to Mr. Le Hai Bang, Head of the Department of Environmental Protection of Thai Nguyen province, one of the tools to measure and reduce greenhouse gas emissions caused by human activities is carbon credit.

This is a certificate of the right to emit CO2 or other greenhouse gases converted to CO2. The seller is the party that has the ability to reduce or increase carbon sequestration compared to a reference level. Each carbon credit corresponds to one ton of CO2 or the equivalent amount of greenhouse gases converted to CO2 that have been avoided or removed.

Carbon credits are not only a way to reduce emissions but also bring significant economic value. Businesses can promote business development while contributing to creating a sustainable and environmentally friendly living environment.

Carbon credits also have many practical benefits when playing an important role in reducing greenhouse gases, actively contributing to the international community's joint efforts in reducing climate change. At the same time, promoting sustainable behavior by integrating carbon credits into strategies, demonstrating commitment and enhancing the implementation of greenhouse gas reduction solutions to achieve or maintain. Especially promoting brand value, creating opportunities for businesses to build brand value when consumers appreciate products and services that have a positive impact on the environment.

The carbon credit market has been operating for some time now, mainly from the forestry sector. It is estimated that Vietnam can sell 57 million carbon credits to international organizations and earn hundreds of millions of USD.

In the coming time, the demand for carbon credits is forecast to increase sharply both domestically and internationally. This contributes to increasing investment opportunities for forest development through the mechanism of creating domestic carbon credits and participating in the voluntary carbon market... Notably, this opportunity will be shared equally among localities with potential and strengths in forests, including Thai Nguyen.

Providing seeds for afforestation is always a concern of Thai Nguyen province.

Potential of Thai Nguyen

Thai Nguyen has a large forest area and resources, with many potential opportunities for carbon market development. The province currently has 183,000 hectares of forest, of which 62,000 hectares are natural forests, the rest are planted forests (mainly acacia, eucalyptus, linden, etc.). This is the potential to implement activities to enhance forest carbon stocks under the REDD+ mechanism and register for carbon credits.

In fact, the total amount of carbon absorbed and stored in our country in general, and Thai Nguyen in particular, is quite large. However, the carbon reserves vary greatly between forest types in different regions, ranging from 1-19 tons of carbon/ha to over 150 tons of carbon/ha. In particular, the more broadleaf forests, the higher the reserves.

Mr. Le Cam Long, Head of Thai Nguyen Provincial Forest Protection Department: Forests have high value and are multi-purpose, especially in combating climate change, conserving biodiversity, and bringing practical value to the community. Investment in forest protection, restoration, and sustainable development is being promoted in Thai Nguyen.

In 2024 alone, Thai Nguyen planted over 4,370 hectares of concentrated forests, exceeding the plan by 28.6%. Accordingly, the province has also strongly developed the area of ​​large timber forests, now having nearly 16,000 hectares. Not stopping there, each year, the whole province also plants over 1.4 million scattered trees according to the Government 's Project to plant one billion trees in the 2021-2025 period.

Along with that, forest management, protection and development work continues to be strengthened through increasing the area of ​​forests certified with FSC sustainable forest management; strictly handling violations of the Forestry Law; promoting information and propaganda on forest management, protection, and planting large timber forests...

Forest carbon credits are a special commodity; therefore, in addition to the efforts of the State, Thai Nguyen province needs to encourage businesses to invest in this business sector. In fact, this is a direction that is completely consistent with our country's orientation in optimizing socialized investment sources from businesses and organizations in the task of protecting and developing forests.

On January 7, 2022, the Government issued Decree No. 06/2022/ND-CP regulating the reduction of greenhouse gas emissions and the protection of the ozone layer. This includes specific regulations on the development roadmap and timing of the implementation of the domestic carbon market.

Specifically, by the end of 2027, develop regulations on carbon credit management, greenhouse gas emission quota exchange activities and carbon credits; develop regulations on the operation of the carbon credit trading floor...

From 2028, a carbon credit trading floor will be put into operation; regulations will be put in place for connecting and exchanging domestic carbon credits with regional and global carbon markets...

Source: https://baothainguyen.vn/kinh-te/202505/kinh-te-rung-va-muc-tieu-tin-chi-cac-bon-0720faa/