HANOI: If the carbon market in Vietnam is well managed and developed, it can bring in hundreds of millions of US dollars each year to the country, help protect forests, create a sustainable source of finance, and support local communities living near forests.
That was the message from Tran Quang Bao, director of the Vietnam Department of Forest speaking at a workshop on “Forest Carbon – Potential to Create New Financial Sources for Forest Protection and Development” here last Thursday.
Bao said Vietnam has great potential to develop a forest carbon market thanks to its large forest area and environmental protection commitments.
“Participating in the carbon market also helps Vietnam fulfil its international commitments on climate change, especially the goal of carbon neutrality by 2050 that we committed to at COP26,” he said.
Vietnam is one of the countries most severely affected by climate change.
In that context, with more than 14.8 million hectares, accounting for about 42.02% of the natural area, Vietnam’s forests play an extremely important role in minimising the negative impacts of climate change, he said.
“Mobilising financial resources from the exchange of forest carbon credits will contribute to forest conservation, greenhouse gas emission reduction and sustainable economic development in many countries, especially those with large forest areas like Vietnam.”
To tap this potential, he said challenges in the legal, financial, technical and community engagement frameworks need to be addressed.
“Improving governance, strengthening international cooperation and promoting public awareness are important steps for Vietnam to develop an effective forest carbon credit market.”
Forestry is currently the only sector with the potential for negative net emissions.
This success has been made thanks to the government’s forestry development policies such as the closure of natural forests, afforestation, forest protection and development, and international support in forestry, he said.
Vietnam is currently implementing the Emission Reductions Payment Agreements in the north central region, inked between the World Bank and the Ministry of Agriculture and Rural Development (MARD).
As a result, 10.3 million tonnes of CO2 have been successfully transferred and US$51.5mil has been received in the 2018-19 period.
The MARD is completing a dossier for submission to the Prime Minister for considering the signing of similar agreements for 11 provinces in the Central Highlands and south-central regions, Bao said. — Viet Nam News/ANN
