At present, the forest area of Vietnam is 14.79 million hectares, the forest coverage rate exceeds 42%, and the output value growth rate is maintained at 4.6%. Revenues from forest environmental services amounted to nearly VND 11 trillion (US $470 million). It is worth mentioning that in 2023, Vietnam sold 10 million carbon credits for the first time, bringing more than $50 million in revenue to the forestry industry, becoming one of the 60 countries with the highest carbon credit sales capacity in the world.
With regard to the potential of the carbon credit market, according to the Forestry Bureau of the Ministry of Agriculture and Rural Development, Vietnam can sell about 40 million carbon credits per year, and at a unit price of $5 per carbon credit, the forestry industry can earn $200 million per year.
According to the Forestry Bureau of the Ministry of Agriculture and Rural Development, Vietnam has signed a letter of intent to reduce emissions with the Organization for Forestry Financing (Emergent). According to the letter of Intent, Vietnam expects to transfer 5.15 million tonnes of carbon credits from Emergent at a minimum price of $10 per tonne (equivalent to $51.5 million) during the 2022-2026 period.
The revenue generated by the sale of carbon credits to protect forests will help Vietnam reinvest more in forests, thereby creating more jobs, raising the incomes of forest owners and farmers, and protecting Vietnam’s biodiversity and environment.
The revenue generated by the sale of carbon credits to protect forests will help Vietnam reinvest more in forests, thereby creating more jobs, raising the incomes of forest owners and farmers, and protecting Vietnam’s biodiversity and environment.
Reference: Vietcong News Agency
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