Vietnam Develops Market for Forest Carbon Credits Amid Growing Investor Interest

Vietnam is advancing its market for forest carbon credits, revealing significant commercial potential for forestry-based emission reductions. A recent workshop in Hanoi reviewed findings from a World Bank-funded program assessing the legal and commercial outlook for these credits, conducted by the Vietnam Energy and Environment Consultancy (VNEEC) and South Pole.

From 2018-19, Vietnam generated 16.2 million tonnes of CO₂ equivalent, with 10.3 million tonnes transacted. The government has authorized an additional 1 million tonnes for transfer, leaving 4.9 million tonnes available.

Between 2021 and 2025, the Central Highlands and South Central Coast programs are expected to yield about 20 million tonnes. A survey indicated that 25% of potential buyers showed interest, with preferences for transactions between 100,000-500,000 tonnes. Vietnam is also developing a national technical standard for carbon credits, addressing eligibility and compliance, while overcoming challenges like legal gaps and infrastructure needs.