Vietnam May Earn $200M Per Year From Selling Carbon Credits

Vietnam May Earn $200M Per Year From Selling Carbon Credits - Carbon Credits

Vietnam has the potential to generate an annual revenue of $200 million by selling approximately 40 million carbon credits, according to calculations by the Department of Forestry, as reported by news website Vietnam+.

Under a recent agreement with nonprofit platform Emergent that serves as an intermediary between tropical forest countries and the private sector, Vietnam will transfer credits corresponding to 5.15 million tons of carbon dioxide (CO2) annually, fetching at least $10 per ton between 2022 and 2026.

The nation’s Ministry of Agriculture and Rural Development has outlined seven targets and 11 solutions for forestry management this year.

Key priorities include finalizing the national forestry plan and providing support to companies transitioning from forestry production to forestry business.

Relevant: Singapore And Vietnam Sign New Green Economy & Innovation Deals

Vietnam currently boasts 14.8 million hectares (36.3 million acres) of forest, covering 42% of its land.

The forestry sector demonstrates stable growth, with a 4.6% increase in production value.

Additionally, revenue from environmental protection services has reached nearly 11 trillion Vietnamese dong ($445 million).

In a significant development last year, Vietnam sold over 10 million credits to the World Bank, earning more than $50 million.

This deal propelled the Southeast Asian nation into the ranks of the top 60 countries worldwide with significant potential for carbon trading, Vietnam+ said.

Read more: Vietnam Wraps Up $51.5M Carbon Credits Sale To World Bank

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