70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / News / Viet Nam
Vietnam plans to auction 5 million tons of carbon credits
Ngoc Mai 11:20, 2024/03/24
Forest carbon credits are generated from emission reduction project activities such as reducing forest loss and degradation, enhancing afforestation, reforestation, and improved forest management activities.

The Vietnamese Government intends to auction approximately five million tons of excess carbon credits through international trading platforms due to the surplus available. 

This information was outlined in a report sent by the Ministry of Agriculture and Rural Development (MARD) to the Prime Minister regarding the implementation status of the Emission Reductions Payment Agreement (ERPA) in the North Central region and the proposal to transfer the surplus greenhouse gas emission reductions for the period of 2018-2019.

 Vietnam is pushing to fulfill its nationally determined contributions under the Paris Agreement on climate change. Source: VNA

Specifically, last October, the World Bank (WB) sent a letter confirming Vietnam's emission reduction of 16.21 million tons of carbon dioxide (CO2). Of this amount, Vietnam received a payment of VND1.25 trillion (US$28 million) from the WB for reducing 10.3 million tons of carbon emissions between February 1, 2018, and December 31, 2019.

Of the excess 5.9 million tons of carbon credits, the Ministry of Agriculture and Rural Development (MARD) plans to sell 1 million to the World Bank, while the rest will be auctioned through international trading platforms.

For the remaining amount of carbon credits, the ministry would seek the World Bank's mediation to find potential buyers under the established ERPA or assist Vietnam in contacting pilot auctions through international trading platforms.

At present, Vietnam lacks experience in finding buyers as the field is still relatively new, the ministry said.

If the pilot auction proposal is approved, the Prime Minister will assign the Ministry of Finance to lead and coordinate with relevant agencies to develop a plan.

Currently, the voluntary carbon market price worldwide fluctuates between $2-4 per ton of CO2, with the carbon price for forestry and land use reaching $3.07 per ton in 2021. According to carboncredits.com, the natural ecosystem carbon price reached $1.57 per ton of CO2 on March 5.

Regarding carbon credit sales, Vietnam has received $51.5 million for verified emission reduction results from the WB, due to forest loss limitations, forest degradation, and increased carbon storage through afforestation and reforestation.

Carbon credit sales are part of the greenhouse gas emissions payment agreement for the North Central region signed on October 22, 2020, between the International Bank for Reconstruction and Development (IBRD) under the World Bank and the MARD.

According to the WB, Vietnam is the first country in the East Asia Pacific region to receive payments based on emission reduction results from the WB's Forest Carbon Partnership Fund.

The MARD recognizes that the success of the Reducing Emissions from Deforestation and Forest Degradation (REDD+) program brings Vietnam closer to fulfilling its nationally determined contributions under the Paris Agreement on climate change while also protecting important areas for biodiversity conservation.

Forest carbon credits are generated from emission reduction project activities such as reducing forest loss and degradation, enhancing afforestation, reforestation, vegetation restoration, and improved forest management activities.

Forest owners can convert the area of forests they manage and protect into CO2 absorption amounts, generate carbon credits, and sell these credits in the carbon market through greenhouse gas emission reduction mechanisms.

RELATED NEWS
TAG: Vietnam news vietnam things to know vietnam carbon credit 2024 vietnam green 2024
Other news
16:39, 2024/06/14
Vietnam licenses 43 religious organizations
A feature in Vietnam’s religious practices is that believers of one religion can engage in traditional spiritual activities.
14:13, 2024/06/14
Vietnam news in brief - June 14
Check out the latest events in Vietnam for today.
14:27, 2024/06/13
Vietnam news in brief - June 13
Read The Hanoi Times to keep up with the latest developments in the country.
14:32, 2024/06/12
Vietnam news in brief - June 12
Keep updated with the latest news about Vietnam on The Hanoi Times.
14:03, 2024/06/11
Vietnam news in brief - June 11
Check out the latest events in Vietnam for today.
14:27, 2024/06/10
Vietnam news in brief - June 10
Check out the latest events around Vietnam for today.