Hai Phong plans to pilot a carbon credit exchange in 2026, according to a draft resolution from the city's People's Committee. The resolution outlines using revenue from carbon credit trading for climate change response and green economy projects. Funds will be allocated to initiatives such as forest protection and development, sustainable agriculture, renewable energy, waste treatment, methane recovery, and other emission reduction solutions.

For projects already generating carbon credits, the revenue can fund expansion, infrastructure improvements, and livelihood support for participating communities.

Management estimates that by participating in the carbon credit market and using offset mechanisms to reduce 3-5 million tons of CO2, the city could generate 120-250 million USD annually.

Natural forest on Cat Ba island, Hai Phong. Photo: Le Tan

Hai Phong boasts over 33,000 hectares of forest and forestry land, with 10,000 hectares of natural forest. This extensive area serves as a significant carbon reserve, offering commercial potential if standardized to international norms. Both protection and production forests also show promise for greenhouse gas absorption, paving the way for the development of forest carbon credit models.

As of late june, 163 facilities and businesses in the city are required to inventory their greenhouse gas emissions. The offset mechanism allows entities with emissions below their quota to sell surplus credits to those exceeding their limits. This system is expected to drive both domestic and international markets for emission reduction trading and offsetting.

Nationally, vietnam is accelerating the commercialization of carbon credits. In 2023, the country achieved a milestone by successfully selling 10,3 million forest carbon credits (equivalent to 10,3 million tons of CO2) through the World Bank (WB). Priced at 5 USD per ton, this transaction generated 51,5 million USD, which has since been disbursed to forest owners in 6 provinces across the North Central Coast region.

Le Tan