Over a million tons of carbon credits per year
Gia Lai is located in the Northern Central Highlands region, the second largest province in the country, with more than 720,000 hectares of forestry land and more than 649,000 hectares of forest land. Of which, the natural forest area accounts for 478,000 hectares.
According to Mr. Truong Thanh Ha - Acting Head of the Gia Lai Provincial Forest Protection Department, the province currently owns the largest forest area in the Central Highlands and ranks fourth in the country. Gia Lai forests are rich in biological resources, have high timber reserves and a rich ecosystem.
In 2021, the Kon Ha Nung Plateau Biosphere Reserve, including Kon Ka Kinh National Park and Kon Chu Rang Nature Reserve, was recognized by UNESCO as a world biosphere reserve. The area covers an area of over 400,000 hectares and is virtually untouched by exploitation or deforestation.
Some forest areas in Gia Lai are currently leased for ecotourism development, exploration, experience and participation in forest environmental service payments. With an ecosystem of evergreen tropical forests, conifers, broadleaves, shrubs and grasslands, this forest generates a large amount of CO2. Experts estimate that Gia Lai forest area can absorb and store 1 million tons of CO2 per year, equivalent to 1 million forest carbon credits per year.
Mr. Truong Thanh Ha said that with the lowest carbon credit price estimated at 10 USD/ton CO2, Gia Lai can earn about 130 billion VND/year. This financial source will help the province protect and develop forests more effectively, improve the lives of people working in the forest, and contribute to responding to climate change.
Want to enter the carbon credit market soon
Mr. Luu Trung Nghia - Director of the Department of Agriculture and Rural Development of Gia Lai province - said that the voluntary forest carbon credit market has been formed in the world from activities to combat deforestation and forest degradation. Currently, many countries in the world such as Brazil, Colombia, Peru, Kenya, Cambodia ... have implemented these projects, bringing many financial benefits, reducing greenhouse gas emissions, and at the same time maintaining natural forests while Vietnam has no investment projects for business, buying, selling, and transferring carbon credits.
“Gia Lai province has now developed an outline for the pilot project on forest carbon credit trading to be able to soon participate in the business market and have investment capital for the forestry sector. The provincial Department of Agriculture and Rural Development hopes that the central ministries and branches will provide guidance on procedures and give comments for this project to be implemented in the province,” said Mr. Luu Trung Nghia.
Developing the carbon credit market is a new issue, of an international transactional nature, without specific regulations under Vietnamese law. Therefore, Gia Lai needs specific guidance from the Central Government, ministries, branches and the Prime Minister to be ready to participate in this potential market.
At a recent working session with the Provincial Party Committee and People's Committee of Gia Lai province, the Ministry of Agriculture and Rural Development informed that the Department of Forestry is consulting, developing, negotiating and implementing an agreement to buy and sell emissions reductions from forests in the Central Highlands and South Central regions, including 11 provinces, including Gia Lai.
It is expected that Vietnam will transfer 5.15 million tons of CO2 to the Alliance for Emission Reduction and Enhanced Forest Finance. This organization will pay for this service at a minimum price of 10 USD/ton of CO2. The subject of carbon credit construction is the entire area of natural forests. As for the planted forest area of Gia Lai province, ECOTREE Joint Stock Company proposed a plan for afforestation and regeneration to evaluate carbon credits.
