Prime Minister Pham Minh Chinh has issued a directive focusing on bolstering carbon credit management to effectively implement Nationally Determined Contributions (NDCs).

There have been positive signs since the Vietnamese Government committed to the goal of Net Zero Carbon Emission in 2050.

Prime Minister Pham Minh Chinh emphasised the urgent need to develop a carbon market and carbon credit management mechanisms in his recently-issued directive.

Under an agreement, Vietnam will transfer to LEAF/Emergent 5.15 million tons of CO2 in reduced emissions from forests in the south central region and Central Highlands to 2026. The price is at least $10 per ton of CO2.

Vietnam has received a 51.5 million USD payment from the World Bank for verified emissions reductions - commonly referred to as carbon credits - for reducing 10.3 million tonnes of CO2 in the 2018-2024 period.

Vietnam’s carbon market is expected to thrive in the near future, given that the country has large forest reserves and many corporations stand ready to pour billions of US dollar to purchase forest carbon credits from Vietnam.