DNVN - The forest carbon credit market is facing many difficulties and challenges related to a series of factors such as institutions and policies; readiness of the domestic market and the forestry sector; mobilization of investment resources and technical support; capacity of relevant parties, etc.
Deforestation, natural forest degradation and ineffective management of production forests are the causes of natural resource depletion and increased greenhouse gas emissions. Forest protection is a key task for Vietnam to realize its goal of net-zero emissions reduction.
Vietnam aims to maintain a stable national forest cover rate of 42% to 43%; plant about 238,000 hectares of forest each year and seek to restore natural forests to combat climate change.
According to the Ministry of Natural Resources and Environment, currently, forest carbon credits are receiving special attention from the forestry sector in our country. It is estimated that in the period 2021 - 2030, Vietnam will own about 40 - 70 million forest carbon credits that can be sold to the world carbon credit market.
Developing a forest carbon market contributes to achieving the goal of “Planting one billion trees in the period of 2021-2025” and Net-zero by 2050. Over the years, the expansion of forest area has helped the forestry sector achieve its emission reduction commitments, opening up great potential to participate in domestic and global carbon markets.
Speaking at the workshop “Promoting the value of forest resources associated with the Net-Zero target and sustainable development” on the afternoon of September 24, Mr. Luong Quang Huy - Department of Climate Change, Ministry of Natural Resources and Environment said that the forest carbon credit market has advantages in terms of experience in piloting the Emission Reduction Payment Agreement (ERPA). At the same time, there are opportunities to attract support resources from the international community as well as many investors wishing to cooperate in investing to exchange and trade forest carbon credits.
However, the forest carbon credit market is facing many difficulties and challenges related to a series of factors such as institutions and policies; readiness of the domestic market and the forestry sector; mobilization of investment resources and technical support; capacity of relevant parties, etc.
In particular, according to Mr. Huy, the legal framework, mechanisms and policies on forest carbon markets are lacking or have not been specifically regulated. Forest carbon standards and a system of measurement, reporting, appraisal and credit granting to apply to the domestic carbon market have not been developed.
Meanwhile, international standards set out very high technical, environmental and social requirements for assessing, appraising and granting forest carbon credits. Each partner has different regulations, so the content, methods of negotiating, signing and implementing the ERPA Agreement are different.
At the same time, the budget needed to be arranged in advance for project development, reporting, appraisal and credit granting is relatively large. Currently, there is no valuation of forest carbon credits as a basis for price negotiations with buyers.
According to Ms. Nghiem Phuong Thuy - Department of Forestry, Ministry of Agriculture and Rural Development, the difficulties of the forest carbon credit market are also related to communication and public opinion about forest carbon credits; the demand for credit use in the domestic market and the Nationally Determined Contribution (NDC) of the forestry sector, and State investment in forest protection and development.
Therefore, it is necessary to continue implementing emission reduction programs and pilot research on high-quality carbon credits (blue carbon). Promote communication activities and technical training; research on NDC quota allocation and credit potential for localities.
At the same time, it is necessary to perfect the policy institutions on the transfer and financial management of revenue from forest carbon credits. It is necessary to develop Vietnam forest carbon standards and operating mechanisms, and guide the development and pilot implementation of a number of potential projects.
Galaxy
Source: https://doanhnghiepvn.vn/kinh-te/thi-truong-tin-chi-carbon-rung-gap-nhieu-thach-thuc/20240924042432393
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