Vietnam's bold move to decentralise forest carbon credit management
Việt Nam is moving forward with a new decree to streamline forest carbon credit management. The Ministry of Agriculture and Environment (MAE) has proposed changes to decentralise administrative procedures, shifting more control to local authorities. A recent high-level meeting, led by Deputy Prime Minister Hồ Quốc Dũng, discussed the draft decree and a major carbon credit agreement with US non-profit Emergent. The Government assigned the MAE to draft the decree under Resolution No 01/NQ-CP, issued on January 8, 2025. The document outlines key aspects of forest carbon services, including payment methods, funding management, and how emission reductions will be measured. It also addresses the transfer of carbon credits and the roles of local governments in overseeing these processes.
The MAE has now submitted its proposed adjustments to the Government and the Prime Minister. These changes aim to simplify procedures, allowing provinces and forest owners to participate more directly in carbon credit schemes. The goal is to create a clearer legal framework for Vietnam’s growing forest carbon market.
Việt Nam has already met the technical and institutional requirements to receive payments for reducing emissions from deforestation (REDD+). The country is eligible for funding from the Green Climate Fund, the Forest Carbon Partnership Facility (FCPF), and the LEAF Coalition. These programmes reward nations for protecting forests and cutting greenhouse gas emissions.
A key part of the discussions was the Emission Reduction Purchase Agreement (ERPA) with Emergent, a US-based platform connecting tropical forest countries with private investors. Under this deal, Việt Nam plans to transfer 5.15 million forest carbon credits from the Central Highlands and South Central regions to Emergent. The minimum price for each credit is set at US$10, covering emissions reductions from 2021 to 2025.
The agreement is expected to bring in international funding for forest conservation. Officials say it will help reduce deforestation, boost carbon storage, and support sustainable forest management. Local communities and forest owners could also benefit from new revenue streams. Once finalised, the decree will address current legal gaps and unlock new opportunities in the forestry sector. It will provide a structured way for localities to engage in carbon credit projects, generate income for forest-dependent communities, and help Việt Nam meet its climate commitments. The deal with Emergent marks a significant step toward mobilising global finance for the country’s emission reduction efforts.
