Vietnam is building a legal corridor for the carbon market, in which forest carbon credits will play a key role. The Forest Carbon Credit Standards, which are being developed, will not only be a technical tool in reducing greenhouse gas emissions, but also an important policy lever to help Vietnam move closer to its goal of net zero emissions by 2050...
Vietnam is currently completing the legal framework for the domestic carbon market.
The Department of Forestry and Forest Protection (Ministry of Agriculture and Environment) has just issued a notice to solicit comments on the Draft National Technical Standard "Forest Carbon Credits - General Requirements".
Accordingly, performing the tasks assigned by the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) in Decision No. 2077/QD-BNN-KHCN dated August 26, 2024, the Vietnam Forest Certification Office has developed the above draft standards.
FRAMEWORK OF STANDARDS, CRITERIA AND TECHNICAL REQUIREMENTS FOR ISSUING FOREST CARBON CREDITS
Forest carbon credits are tradable certificates that represent the right to emit one tonne of CO₂ or equivalent (CO₂e).
This credit is generated from carbon projects in the forestry and land use sector, including: REDD+ (Reducing emissions from deforestation and forest degradation, conserving and enhancing forest carbon stocks); A/R (Afforestation or promoting natural regeneration); IFM-N (Improving poor natural forests, protecting and promoting regeneration); IFM-P (Improving planted forests, increasing productivity, extending harvesting cycles); AFP (Agroforestry, planting scattered woody plants).
These projects not only contribute to reducing greenhouse gas emissions but also help protect biodiversity, develop community livelihoods and protect the environment. This is an approach that balances economic benefits and sustainable development.
Developing a forest carbon market not only brings economic benefits through the purchase and sale of credits but also creates incentives for sustainable forest management, linking nature conservation with people's livelihoods.
Under the new draft standard, forest carbon credits will be awarded based on clear criteria related to conditions, measurement methods, appraisal and verification.
Specific requirements include: ensuring additionality (i.e., the amount of emission reductions can only be achieved through these projects); avoiding duplication with other projects; projects must have transparent legal records on land use rights, be free of disputes and be consistent with forest use planning; and comply with regulations on environmental protection, biodiversity conservation and sustainable forest development.
"The measurement and reporting of carbon emissions and absorption must be based on the methodology of the IPCC (Intergovernmental Panel on Climate Change) and national standard TCVN 14287:2024, combining forest inventory data, land cover maps, and land use change data. The monitoring plan must be developed in detail, reported periodically at least every two years, and publicly announced on the project owner's website to ensure transparency."
The draft also specifies and details the requirements for each type of project. Accordingly, for REDD+ projects: Applicable to natural forests in mountainous or coastal areas, with a reference period of 5-10 years in the past. The credit period is at least 5 years, and can be extended up to two times. Priority is given to regional and inter-provincial projects with co-benefits in terms of economy, society and biodiversity.
A/R (Afforestation) Project: Land where the project will be implemented must not be forested for at least 3 years prior to commencement. The crediting period is a minimum of 10 years and can be extended up to two times. Priority is given to planting native, mixed species, and long-cycle forestry trees to increase sustainable CO₂ absorption capacity.
IFM-N Project (Enhanced Forestry and Regeneration): Implemented on depleted natural forests. Minimum credit period is 10 years, renewable twice, while complying with regulations on natural regeneration and replanting.
IFM-P Project (Post-harvest Reforestation): Applicable to existing production forests or post-harvest production forest land. Requires an approved sustainable forest management plan and sustainable forest certification. Minimum credit period of 8 years, renewable twice.
AFP Project (Agroforestry): Implemented on forestry land, agricultural land or hilly swidden land. The credit period is at least 10 years and can be extended up to two times. The project must comply with regulations on scattered tree planting, environmental protection and sustainable livelihood development for local people.
MONITORING, ASSESSMENT AND VERIFICATION
An important factor to ensure the effectiveness and reliability of carbon credits is the independent monitoring and verification process. The organization performing the validation and verification (VVB) must have a certificate of competence according to TCVN ISO 14065 and be legally registered to operate in the field of conformity assessment.
Carbon credit project dossier includes: Project design documents; Periodic monitoring reports; Measurement data, maps and spreadsheets of carbon emissions and absorption; Relevant legal evidence. All these dossiers must be digitally archived, public and verifiable, ensuring transparency in the process of confirming the amount of credits issued.
"Developing a forest carbon market not only brings economic benefits through the purchase and sale of credits, but also creates incentives for sustainable forest management, linking nature conservation with people's livelihoods. When implemented effectively, this will be a green financial source to support localities in protecting forests, while directly contributing to the national strategy on emission reduction."
According to the Department of Forestry and Forest Protection, the implementation of forest carbon projects in Vietnam still faces many challenges. First of all, it is necessary to ensure real complementarity and no duplication with other programs. Measurement, reporting and verification (MRV) also requires high technical capacity, a synchronous data system and specialized human resources.
In addition, projects are also exposed to the risk of leakage and emission reversals due to natural disasters, forest fires or epidemics. To mitigate this, projects need to develop risk response plans and set aside buffers – a portion of credits that are held back and not traded – to compensate for unpredictable fluctuations.
Vietnam is currently completing the legal framework for the domestic carbon market, aiming to connect with regional and global markets. In the future, with the development of digital technology and remote monitoring systems, the forest carbon credit market is expected to expand rapidly, becoming a pillar of the green economy and sustainable development.
When all these factors are operated synchronously, the forest carbon market will not only contribute to combating climate change but also open up a green, sustainable development direction for Vietnam's economy in the coming decades.
To complete the content according to regulations, the Department of Forestry and Forest Protection respectfully invites scientists, organizations, individuals, technical and management staff in related fields to send comments within 60 days from the date of posting the notice. Comments should be sent to the Department of Science, Technology and International Cooperation - Department of Forestry and Forest Protection, No. 02 Ngoc Ha, Ba Dinh, Hanoi.
Chu Minh Khoi
Sources: VnEconomy Newspaper