Vietnam is projected to generate approximately $200 million in annual revenue by selling around 40 million carbon credits, as calculated by the Department of Forestry.
According to reports, Vietnam has recently entered into an emissions reduction purchase agreement with Emergent, a non-profit intermediary facilitating financial support for emissions reduction efforts in deforestation. Under this agreement, Vietnam will transfer approximately 5.15 million tonnes of carbon dioxide to the forest financing organization, valued at a minimum of $10 per ton, spanning from 2022 to 2026.
The Ministry of Agriculture and Rural Development has outlined seven targets and eleven solutions for forestry initiatives this year. Emphasis will be placed on finalizing the national forestry planning and providing support to companies transitioning from forestry production to forestry business.
With a forest area covering 14.79 million hectares, accounting for 42% of the country’s land area, Vietnam maintains stable forestry production growth at a rate of 4.6%. Revenue generated from environmental protection services is estimated to reach nearly VND11 trillion ($445.56 million).
Notably, Vietnam achieved a significant milestone last year by selling more than 10 million carbon credits for over $50 million, ranking among the top 60 countries globally with substantial potential for carbon trading.