VIETNAM GAINS NEARLY US$72 MILLION FROM CARBON CREDIT

The Japan International Cooperation Agency (JICA) announced that Viet Nam will receive an additional US$71.96 million from carbon credit.

This is the second time the country has gained significant revenue from "selling clean air" through carbon credits.

Through a results-based payment mechanism, Viet Nam will be paid corresponding to independently verified reductions in greenhouse gas emissions.

These results were achieved by reducing deforestation and forest degradation, while increasing forest carbon stocks through afforestation and the restoration of natural forests.

The funding from this project will be reinvested to strengthen forest-related policies, institutions, and enforcement measures.

Specifically, the Green Climate Fund (GCF) on April 1 officially approved a funding proposal submitted by the JICA in coordination with the Vietnamese Government for a results-based payment project under the REDD+ mechanism.

The proposal, titled "Viet Nam Reducing Emissions from Deforestation and Forest Degradation (REDD+) results-based payments for results period of 2014", was endorsed at the 44th meeting of the GCF Board held in the Republic of Korea on March 26, 2026.

Through the project's activities, Viet Nam will gradually address the main causes of deforestation and forest degradation, promote sustainable forest management, and improve the livelihoods of local communities that depend on forests.

The project is expected to be implemented over a period of six years, led by Viet Nam's Ministry of Agriculture and Environment, in coordination with provincial People's Committees in the project areas. The target locations include provinces in the Northwest and Northeast regions, namely Dien Bien, Lai Chau, Lao Cai, Son La, Phu Tho and Tuyen Quang.

The approval of this project further affirms the long-standing and effective cooperation between JICA and Viet Nam in the field of REDD+, including support for policy development, forest monitoring systems, and the measurement, reporting, and verification of emission reductions and removals.

In the coming time, JICA will continue to work closely with the Government of Viet Nam and relevant stakeholders to promote forest conservation, mitigate the impacts of climate change, and move toward sustainable development.

At the beginning of 2024, Viet Nam successfully sold 10.3 million forest carbon credits (equivalent to 10.3 million tons of CO₂) for the first time through the World Bank (WB). With a price of US$5 per ton of carbon absorbed, the total contract value reached US$51.5 million.

Source: VCCI