Achieving the goal of net zero emissions by 2050, Vietnam has issued several policies on reducing greenhouse gas emissions. Decree No. 06/2022/ND-CP of the government stipulates regulations on greenhouse gas inventory, emission reduction and development of the domestic carbon market. However, these regulations are not detailed, leading to difficulties in implementation. Currently, this Decree is being supplemented and adjusted and the revisions focus on: (i) regulating emission quotas; (ii) mechanisms for carbon credits trading and exchanges; (iii) requirements and procedures for carbon projects; and (iv) carbon credit monitoring and registration system.

The forestry sector has been undertaking emission reduction activities and is advancing compared to other sectors in preparing its readiness for the domestic carbon market and emission reduction targets. Learning from emission reduction programs (FCPF, LEAF) and international voluntary carbon markets, the development of the national standard (TCVN) on forest carbon credits has been officially approved.

VFCO is assigned by the Ministry of Agriculture and Rural Development to lead the development of this standard, aiming at creating high carbon integrity and quality. This carbon standard will be considered as part of the Vietnam Forest Certification Scheme (VFCS) to generate benefits from forest carbon as an additional financing source for forest owners. Carbon standard is expected to be issued by the end of 2025.

VFCO