Project ‘Promoting Nature-Based Solutions in Vietnam’ came to a successful conclusion, laying the groundwork for future forest carbon credit initiatives

According to the 2023 statistics from the Ministry of Agriculture and Rural Development, Vietnam has a total forest area of 14.8 million hectares, with 10.1 million hectares of natural forests and 4.7 million hectares of planted forests. Despite strong political commitments and policies aimed at preventing deforestation, afforestation, and reforestation, sustainable forest management remains a key strategy for reducing greenhouse gas (GHG) emissions. However, securing stable and long-term financial resources to implement these solutions continues to be a major challenge for Vietnam’s forestry sector. In this context, utilizing financial mechanisms from forest carbon credits is emerging as a crucial approach to preserving natural forests and expanding plantation areas. This not only contributes to ecosystem conservation and the creation of sustainable livelihoods for local communities but also plays a vital role in achieving Vietnam’s GHG reduction targets and its goal of net-zero emissions by 2050.

Based on this background, the “Promoting nature-based solutions (NbS) projects in Vietnam” project was launched in February 2023 and successfully concluded at the end of January 2025. This project is one of six activities under the Carbon Market Partnership Program, funded by the Business Partnerships Platform (BPP) of the Australian Department of Foreign Affairs and Trade (DFAT). Implemented by the Energy and Environment Consulting Joint Stock Company (VNEEC) in collaboration with South Pole Carbon Asset Management Ltd (South Pole), the project aimed to promote nature-based solutions by conducting feasibility studies and developing forest carbon credit projects in Vietnam.

After two years of implementation, the project has successfully achieved the following key outcomes:

• Feasibility studies assessing the potential application of nature-based solutions—including Reducing Emissions from Deforestation and Forest Degradation (REDD+), Afforestation, Reforestation and Revegetation (ARR), Improved Forest Management (IFM), and Wetlands Restoration and Conservation (WRC) – were conducted in Thua Thien Hue and Tuyen Quang provinces. The findings from these studies serve as a critical foundation for developing forest carbon credit projects tailored to local conditions.
• Two Memorandums of Understanding (MoUs) were signed between VNEEC and the Departments of Agriculture and Rural Development of the two provinces, formalizing commitments to collaborate on research, evaluation, and pilot implementation of forest carbon credit initiatives.
• Throughout the project, numerous stakeholder consultations, meetings, and workshops were conducted with government agencies, forestry enterprises, and local communities. These engagements aimed to enhance awareness, build capacity, and gather valuable input from stakeholders to optimize project implementation strategies.
• Notably, the project successfully developed and finalized two forest carbon credit project documents: one following the Gold Standard for ARR activities in Thua Thien Hue province and another under the Verified Carbon Standard for IFM activities in Tuyen Quang province.

Photo: Meeting on the results of the feasibility study for forest carbon credit project implementation between VNEEC, South Pole, and the Department of Agriculture and Rural Development of Thua Thien Hue Province.

Photo: Consultation meeting on the carbon credit project on Improved Forest Management in Tuyen Quang Province.

The project’s closeout workshop was held on February 14, 2025, with the participation of representatives from DFAT, VNEEC, and South Pole. During the meeting, stakeholders reviewed the project’s achievements, discussed challenges encountered during implementation, and identified key lessons learned to inform future strategies. The representative from DFAT recognized this as one of the most successful projects under the BPP program and expressed a strong desire for continued collaboration. They emphasized the importance of expanding partnerships and scaling up related initiatives to support the successful development of forest carbon credit projects in Vietnam and to foster the growth of the country’s carbon market in the future.

With the successful conclusion of the project, significant milestones have been achieved, laying a solid foundation for further collaboration with relevant stakeholders toward the effective implementation of forest carbon credit initiatives in Vietnam. Moving forward, VNEEC will continue efforts to enhance capacity building for stakeholders in the carbon market while strengthening connections with investors and enterprises to mobilize appropriate financial resources for forest carbon credit projects. These efforts will not only accelerate the development of Vietnam’s carbon credit market but also contribute to the country’s commitments to reducing GHG emissions and achieving net-zero emissions.

Linh Nguyen Le & Thuy An

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