Quang Nam pilots forest carbon credit

A carbon credit is a tradable permit or certificate that provides the holder the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas. The aim of the carbon credit is to reduce emissions of greenhouse gas. 

Quang Nam province has nearly 630,000 ha of natural forests which hold approximately 1 million tons of carbon. The pilot project for carbon credits will help the province expand 20% of its natural forest area in the next ten years, raising forest coverage to 61% by 2025, reviving the forests and generating around 7 million cubic meters of timber, and cutting emissions of 14 million tons of carbon dioxide by 2030.  

Revenue from selling carbon credits will be re-spent on forest management, protection, and development.

Quang Nam province is the first locality in Vietnam to receive government approval for a pilot project on trading forest carbon credits.

Le Duc Tuan, Head of the Forest Ranger Section of Nong Son district, said:  "To prepare for training forest carbon credits, we have mobilized all local forces. We have strengthened patrols to prevent the exploitation, trading, and transportation of forest products as well as illegal poaching."

With a forest coverage of 60%, Quang Nam is among the three localities in the central-highland region with the largest coverage in the country. Each year, Vietnam can sell 57 million carbon credits to the world. With a price of 5 USD per credit, Vietnam can earn hundreds of million USD each year. Many domestic and foreign businesses and organizations have invested in trading carbon credits in Quang Nam.

Le Tri Thanh, Chairman of the Quang Nam provincial People’s Committee, said: "We have cooperated with investors and consultants to fine-tune the project. If the project is successful, Quang Nam will earn 5 to 10 million USD plus the revenue from forest services. Quang Nam will use the money to strengthen forest management and develop big timber forests toward high added value industrial production." 

Piloting the sale of carbon credits in Quang Nam province has prompted other localities to follow suit. Vietnam has the opportunity to participate in the world carbon market, especially with the enforcement of the Paris Agreement and the responsible commitment of the international community.