Room for green economic development from forest carbon credits

As climate change intensifies and the global push toward net-zero emissions gathers pace, Vietnam is gradually shaping its carbon market, with forestry identified as a key pillar thanks to forests’ long-term capacity to absorb and store carbon dioxide. With extensive forest resources, Gia Lai province is emerging as a locality with strong potential to develop forest carbon credits, helping turn ecological assets into drivers of green economic growth.

An area of large-timber plantation forest in Van Canh commune under the management of the Van Canh Forest Protection Unit. (Photo: VNA)
An area of large-timber plantation forest in Van Canh commune under the management of the Van Canh Forest Protection Unit. (Photo: VNA)

Gia Lai (VNA) – As climate change intensifies and the global push toward net-zero emissions gathers pace, Vietnam is gradually shaping its carbon market, with forestry identified as a key pillar thanks to forests’ long-term capacity to absorb and store carbon dioxide. With extensive forest resources, Gia Lai province is emerging as a locality with strong potential to develop forest carbon credits, helping turn ecological assets into drivers of green economic growth.

Gia Lai covers more than 2.15 million hectares, including nearly 988,000 hectares of forest land. Of this, over 692,700 hectares are natural forests and more than 295,100 hectares are planted forests.

Beyond their vital role in environmental protection, climate regulation and disaster prevention, these forests are regarded as a substantial “carbon capital”, providing a solid foundation for participation in domestic and international carbon credit markets.

According to Truong Thanh Ha, Deputy Head of the Gia Lai Forest Protection Department, the province’s large forest area and diverse ecosystems create favourable conditions for forest carbon credit programmes. However, he stressed that development must follow a methodical approach, strictly comply with legal regulations, align with carbon market mechanisms, and ensure a balance of interests among the State, businesses and local communities.

Studies and practical experience in the Central Highlands indicate that each hectare of forest can absorb around 4–6 tonnes of carbon dioxide annually, depending on forest type and condition. With an average of about 5 tonnes per hectare per year, Gia Lai’s forests are estimated to absorb nearly 4.9 million tonnes of carbon dioxide each year. If converted into carbon credits and traded under appropriate mechanisms, this volume could become a significant economic resource, enhancing forest value and generating sustainable income for forest owners.

Ngo Van Thang, Director of Kon Ka Kinh National Park, said the park manages nearly 42,000 hectares of forest, mainly natural forests rich in biodiversity. He noted that linking forest protection and development with financial mechanisms from carbon credits not only strengthens conservation funding but also improves livelihoods for communities living near forests. Activities such as forest protection contracts, support for sustainable livelihoods and ecotourism development help encourage local people to remain closely connected with forests and view protection as both a responsibility and a long-term benefit.

In recent years, Gia Lai has actively joined national and international initiatives to reduce greenhouse gas emissions from forests. The Department of Forestry and Forest Protection is currently advising the Ministry of Agriculture and Environment on the development and implementation of the Emission Reductions Purchase Agreement (ERPA) for the Central Highlands and south central regions, including Gia Lai, under the LEAF Coalition framework.

At the local level, the Gia Lai Department of Agriculture and Environment has coordinated with relevant agencies, experts and the Forest Inventory and Planning Institute to conduct surveys, verification and appraisal of emission reduction results in selected communes and among forest owners. Communication efforts on the carbon market and carbon credit mechanisms have also been strengthened to ensure transparency and community consensus.

Beyond the ERPA programme, the province is considering expanding cooperation and developing additional forestry-related carbon credit projects in line with national carbon market orientation and local conditions.

Authorities believe that forest carbon credits can create new, sustainable revenue sources for the State and forest owners, incentivise forest protection and development, and improve livelihoods for local people, particularly ethnic minority communities. Converting the ecological value of forests into economic value through carbon credits is seen as a pathway aligned with green growth and circular economy goals, supporting sustainable development in the years ahead in Gia Lai province./.

VNA

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