Great potential
Forest carbon credits are tradable certificates that represent the right to emit one ton of carbon dioxide (C02) or one ton of C02 equivalent. One carbon credit is equivalent to one ton of CO2 (allowing the emission of one ton of CO2 or equivalent from other greenhouse gases such as CH4, NO2). Forest carbon credits are generated from afforestation, reforestation and vegetation regeneration (ARR), and enhanced forest management (IFM). Developing forest carbon credit projects is a great opportunity to strengthen forest management and protection, improve people's lives and combat climate change.
At the scientific workshop on green and smart urban and industrial development associated with the carbon credit market (held on January 12, 2024 in Dien Bien), Mr. Hoang Hiep, Director of the Green Growth Research Institute (Vietnam Academy of Agriculture ) emphasized: “In the context of Vietnam promoting the implementation of international commitments on climate change response, Dien Bien province will have many opportunities and challenges. In particular, the policy of developing the carbon credit market is a great opportunity because the province has a large area of natural forest, a low urban rate and a low proportion of industrial development to realize green transformation along with digital transformation in urban and industrial development”.
In the Northwest region, Dien Bien belongs to the group of provinces with great potential to develop diversified agriculture and forestry associated with processing industry, experiential tourism, suitable for the green economic development model, low emissions in the future. Dien Bien's low urbanization rate is favorable for developing the carbon credit market. Currently, the urbanization rate is about 28%; the proportion of industry - construction accounts for about 26.5% in GRDP; some of the main industries of Dien Bien province include: hydropower, construction materials production (bricks, construction stones, cement), mineral exploitation... these are some of the industries with high emission rates.
In recent years, the income of people in the province, especially households living near the forest area, is still limited, and illegal deforestation still occurs. The province has been applying central policies to support organizations, individuals, and communities to contract out forest management and protection to minimize impacts on forests. However, the actual support levels are still low. Therefore, participating in the carbon credit market will bring many economic, social and environmental benefits.
According to initial calculations, the carbon reserves of Vietnam's forests, including Dien Bien , range from about 1 - 19 tons/ha, with some places exceeding 100 tons/ha. This shows that Dien Bien has a new resource with great potential, but has not been exploited.
Participating in carbon credit trading (currently each carbon credit costs 5 USD) will bring a large source of revenue, contributing to increasing the income of forest growers and forest protection; achieving the goals of hunger eradication, poverty reduction, and sustainable development of the locality. Regarding the environment, it will reduce greenhouse gas emissions of the province in particular and Vietnam in general, contributing to the implementation of Vietnam's commitments and the efforts of the international community related to climate change mitigation.
However, currently, the carbon credit business still does not have a specific legal framework, so many businesses want to buy carbon credits but cannot. Based on Decree 06/2022/ND-CP dated January 7, 2022 of the Government detailing the reduction of greenhouse gas emissions, ozone layer protection and carbon market development, the Ministry of Natural Resources and Environment is developing the Project "Developing the carbon market in Vietnam". Accordingly, in 2025, Vietnam will start a pilot and by 2028, the carbon credit trading floor will be officially operated.
Ready to enter the carbon credit market
In order to be ready to participate in the forest carbon credit market, Dien Bien province has implemented specific actions in recent years. In particular, the province has approved the sustainable forest protection and development project for the period 2021 - 2025, with the goal of investing in developing the area of protective forests, production forests, developing non-timber forest products, and planting scattered trees to contribute to increasing the coverage rate to 45.5% by 2025; conserving biodiversity and the function of the forest ecosystem. Thereby, creating jobs, increasing income for people, improving livelihoods, thereby improving the effectiveness of forest management, protection and development.
In order to maximize the advantages and proactively develop the carbon market, experts from the Green Growth Research Institute, the Urban Development Management Institute, the Institute of Digital Transformation Strategy, the Consulting Center - Institute of Tropical Architecture all said that Dien Bien needs to have more policies to encourage and attract the development of forest protection and development projects, creating high-quality carbon credit sources; proactively implement measures to protect and restore forests in Muong Cha, Muong Nhe, Dien Bien Dong districts...
Ms. Ngo Thi Thanh Dung, Chairwoman and General Director of SDP Investment Consulting Company, said: Dien Bien forest carbon credits have great potential with the existing forest area. At the same time, the policy of afforestation, forest development and forest protection measures have been effectively implemented. With a planned land area for forestry of nearly 695,000 hectares (accounting for 72.8% of the natural land area), Dien Bien needs to promote attracting wood processing enterprises and encourage people to plant forests for timber to improve the forest economy. In addition, the large area of macadamia trees is also a potential for absorbing CO2 to create carbon credits. Many businesses, individuals and investors pay special attention to research and development activities of carbon credits in the province.
Implementing the Project on sustainable forestry economic development in the province for the period 2021 - 2025, with a vision to 2030, in 2022, the whole province took care of nearly 702 hectares of planted forests; 15,386 hectares of regeneration; planted more than 391 hectares of concentrated forests; planted more than 906,000 scattered trees. In 2023, the whole province planted more than 1,551 hectares of forests (reaching 373.93% of the annual plan). The provincial agricultural sector has supported forest protection for planned forests as protection forests and production forests as natural forests assigned to the community 5,342 hectares; supported planting production forests with timber trees 489 hectares; supported planting production forests with non-timber forest products 22 hectares.
Also in 2023, the whole province planted 2,474 hectares of macadamia trees, bringing the total area of macadamia trees in the whole province to more than 7,249 hectares; more than 2,180 hectares of medicinal plants... This is considered an important solution to serve as a basis for determining the owner of natural forests before entering the carbon credit trading market.
The development of the forest carbon credit market is not only in line with the world trend, but also contributes to promoting the development of a green economy and a circular economy, in accordance with the spirit of the Resolution of the 13th National Party Congress; contributing to the implementation of the Prime Minister's Netzero commitment at the COP 26 Conference. Dien Bien province is currently actively implementing solutions to manage and protect forests to participate in the carbon credit market.
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