The total revenue of PFES reported in late 2017 was VND8.219 trillion, or $350 million, which came from 494 payers, including 339 hydropower companies, 96 water companies and 59 tourism firms.

The amount of money was used for forest services, but it was not high enough to cover all expenses for forest protection and development.

CO2 volume

A report found that in 2013 the total greenhouse gas (GHG) emissions from electricity generation was 41.56 million tons of CO2. 

Under the Green Growth Action Plan (GGAP) drawn up by the Ministry of Industry and Trade, Vietnam aims to reduce CO2 emissions from thermal power in 2015-2020 by 20 percent, with international support. 

This means that the CO2 emission volume would fall by 14.27 million tons, including 10.68 million tons from coal-fired power and 3.59 million tons from liquefied power.

Vietnam currently has 91 cement plants, while the figure is expected to rise to 111 by 2030 with the total capacity of 144.54 million tons per annum. 

The cement industry emitted 46.4 million tons of CO2 in 2013. Under the plan, the industry needs to reduce the CO2 volume by 6.7 million tons per annum in 2018-2020 and 14.4 million tons per annum in 2021-2030.

As for steel manufacturing, the goals are 65 million tons by 2020 and 107 million tons by 2025. Vietnam had 91 steel mills by 2015 and plans to have 54 more in 2015-2020. In 2013, the industry emitted 2.64 million tons CO2.

Meanwhile, transport activities emitted 29.492 million tons of CO2, including 1.218 million tons from the aviation sector, 26.815 million tons from road transport, 0.109 million tons from railways and 1.348 million tons from waterways transport. 

The biggest volume of CO2 emissions came from road transport with 2.7 million cars and 45 million motorbikes in 2017.

The figures show that the volume of CO2 produced by industries is high, which is far beyond the endurance of forested areas.

The laws 

Carbon sequestration is one of three services that have not been fully implemented according to the government’s Decree 99/2010. Revenue from carbon PFES is expected to help generate more financial sources for forest protection and management.

With the new Forestry Law, the National Assembly has officially recognized carbon PFES (C-PFES) and assigned the Ministry of Agriculture and Rural Development (MARD) to design a mechanism for C-PFES in Vietnam.

The law also affirms that organizations and individuals that produce greenhouse gas during their production and business activities have to pay for forest carbon sequestration and storage services.

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Chi Mai