The forest carbon credit market is attracting attention due to its great potential in promoting sustainable development, reducing greenhouse gas emissions and realizing the Net Zero commitment by 2025 of Prime Minister Pham Minh Chinh at COP26.
Comrade Dang Kim Cuong, Director of the Department of Agriculture and Environment, said: The carbon market is not a new concept, this is a system where CO2 emissions are bought and sold and exchanged as a commodity, in which each carbon credit represents one ton of CO2 or other greenhouse gases that are reduced or eliminated. The value of a carbon credit depends on many factors including: Type of project that generates carbon credits; standards applied to determine carbon credits; presence of accompanying benefits; location of carbon credit transactions... Calculating by forest area, Ninh Thuan has about 28.2 million tons of CO2 (natural forests 26.7 million tons, planted forests 1.5 million tons). Currently, the price of a carbon credit on the global market ranges from 1-2 USD, to nearly 200 USD. In 2023, for the first time in Vietnam, the forestry sector successfully transferred 10.3 million tons of natural forest carbon credits (10.3 million tons of CO2) for the period 2018-2024 to the World Bank (WB) at a unit price of 5 USD/ton. Currently, the Vietnam Forest Protection and Development Fund has received 51.5 million USD from the WB and coordinated with 6 provinces in the North Central region to make payments to beneficiaries according to regulations.
Determining that exploiting carbon credits not only helps increase resources for reinvestment in forest protection and development, but also opens up new opportunities for the forestry sector, reduces the financial burden in forest development, helps people have sustainable livelihoods and lives associated with forests, in early 2024, the Department of Agriculture and Environment implemented the task of "Researching and proposing regulations on carbon credit management in Vietnam, promoting the development of the domestic carbon market and connecting with regional and world carbon markets". Specifically: Coordinate with ECOTREE Group Joint Stock Company to synthesize the results of field surveys at the forest area managed by the unit to develop a pilot carbon credit project for planted forests, protected regeneration areas and non-forested land for afforestation under the direction of the Provincial People's Committee; complete the content of the draft Plan for implementing forest carbon credits in Ninh Thuan province until 2025 for submission to the Provincial People's Committee for consideration. The main objective is to ensure effective prevention of deforestation and forest degradation through strict management and monitoring of existing forest areas. Plant new and restore degraded forests, improve the quality of at least 10% of natural forests without reserves and forestry land with regenerated timber, focusing on areas with high potential for carbon sequestration. Complete data on forest area, forest reserves and forest carbon stocks in the province through specialized forest surveys for 100% of forest areas under forestry planning managed by state organizations and natural forest areas not yet assigned or leased managed by the People's Committees of communes. Attract at least 2 investment projects from international organizations and enterprises through forest carbon sequestration and storage services, reduce greenhouse gas emissions from limiting deforestation and forest degradation, sustainable forest management, and green growth. Provide training and capacity building on forest management and activities related to forest carbon credits for at least 50 forestry leaders and managers. At the same time, organize at least 10education and communication programs to raise community awareness of the importance of forests and climate change, and promote the active participation of local communities in forest protection activities.
Comrade Dang Kim Cuong added that, in accordance with the direction of the Prime Minister in Directive No. 13/CT-TTg dated May 2, 2024 on strengthening carbon credit management to implement the contribution determined by the country, the Department of Agriculture and Environment is coordinating with the Department of Forestry to advise the Ministry of Agriculture and Environment to develop and implement the participation in the forest carbon market under the Emission Reduction Payment Agreement for the Central Highlands and South Central Coast (ERPA), for the area of natural forests in the province. According to the plan, the dossier will be completed and payments will be made to beneficiaries in the fourth quarter of 2025. It is expected that Vietnam will transfer 5.15 million tons of CO2 to LEAF/Emergent in the period of 2021-2025. In addition, the unit has submitted to the Provincial People's Committee a decision approving the plan to select a contractor to estimate the bidding package for the forest survey task in Ninh Thuan province as well as issuing a plan to implement the forest survey task in Ninh Thuan province; this is an important content related to the investigation and calculation of carbon reserves as a basis for calculating carbon credits to propose payments when participating in the domestic and foreign carbon market after the carbon credit market in Vietnam is piloted at the end of 2025 and the domestic carbon trading floor is officially put into operation in 2029 according to the Prime Minister's Project on establishing and developing the carbon market in Vietnam.
Youth
Source: https://baoninhthuan.com.vn/news/152834p1c30/tin-chi-carbon-chia-khoa-phat-trienrung-ben-vung.htm
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