The Government has issued Decree 180 on forest carbon absorption and storage services. Accordingly, effective 1/7, the buying and selling of emission reduction results and forest carbon credits must be conducted via contracts or trading exchanges, and require confirmation from the Ministry of Agriculture and Environment before transfer.

A carbon credit is a tradable permit or certificate, possessing commercial value, which grants its holder the right to emit one ton of CO2 or another greenhouse gas from a specified list.

Forest owners hold the rights to carbon credits generated from their planted forests. They can collaborate with organizations or individuals to implement projects, conduct measurement, reporting, and verification (MRV), and submit procedures to request carbon credit issuance.

For forests under public ownership, the Ministry of Agriculture and Environment represents the owner of credits created from forest projects executed by its specialized agencies. Provincial People's Committees represent the owner of credits generated from forests managed by local specialized agencies.

The Minister of Agriculture and Environment will establish the method for determining carbon commodity payment levels for various forest types. This pricing must cover the costs of establishment, registration, MRV, and support for forest protection, development, and livelihoods.

The Ministry is also responsible for allocating greenhouse gas emission reduction targets from forests to each province and city, and confirming the quantities permitted for sale based on the credits issued. The authority to issue forest carbon credits is approved by provincial People's Committees or the Ministry of Agriculture and Environment.

The creation and trading of carbon credits must ensure transparency and balance the interests of the State, forest owners, and relevant parties. These activities must not impact Vietnam's international commitments on greenhouse gas emission reduction.

Specifically, the international transfer of carbon credits is regulated by Decree 112. This decree sets a ceiling percentage for the sale of emission reduction results and carbon credits across 47 sectors, including electric vehicles, energy, wind power, solar power, and forests. Credits from electric vehicle conversions, charging stations, offshore wind power, and CO2 capture from the air can be sold 90% internationally. Credits from biomass power and certain forest types can be sold up to 50%. The remaining percentage is retained domestically to fulfill national emission reduction commitments.

Thuy Truong