Da Nang proactively engages in carbon market

Great opportunities from trading carbon credit

After the merger, the Da Nang City now holds a very large forest-carbon reserve, with a total forest area of 688,288 hectares, including 504,213 hectares of natural forest and 184,075 hectares of plantation forests that have reached maturity. This is an important resource that gives the city a strong advantage as it gradually enters the carbon market, at a time when green growth and sustainable development are becoming global trends.

Before the merger, in 2021, the former Quang Nam Provincial People’s Committee received approval from the Prime Minister to study and develop a pilot scheme for forest carbon credit trading under the REDD+ mechanism. By 2024, the province continued to request participation in the emissions-reduction payment project for forests in the South Central and Central Highlands regions under the TREES standard of ART, coordinated by the LEAF Coalition, as well as the REDD+ results-based payment program funded by the Green Climate Fund. However, due to unresolved legal frameworks, the pilot project on forest carbon credit trading cannot be implemented until 2028.

The government’s issuance of Decree 119/2025/ND-CP, effective from August 1, 2025, has established the first legal foundation for operating the domestic carbon market. Building on this, Da Nang is continuing to petition the central government to allow the city to participate in REDD+ results-based payment programs and the pilot scheme for forest carbon credit trading.

According to Mr. Quach Huu Son, Deputy Director of Da Nang City’s Forest Protection Sub-department, if these schemes are implemented, the locality could increase its average annual revenue by over VND 110 billion. This would be a significant resource, contributing to forest protection and development across the city.

A clear strategy is needed

According to the Da Nang Department of Agriculture and Environment, in the context of strong climate change impacts, the city has been implementing multiple solutions for green growth, digital economy, and circular economy, while gradually entering the carbon market. Participation in carbon market mechanisms not only helps reduce emissions but also generates revenue that can be reinvested in climate adaptation programs, in line with the spirit of National Assembly Resolution 136/2024/QH15.

However, to date, Da Nang has not yet developed a comprehensive program for greenhouse gas inventory and emissions reduction across the city. Current inventory data are mainly based on short-term projects, which, although highly reliable, do not yet meet the requirements for long-term policy planning. In the immediate term, city departments are guiding businesses in preparing greenhouse gas inventory reports and developing emission reduction plans for the 2026 - 2030 period in accordance with government regulations.

Mr. Vo Thanh, Director of the Environmental Protection Sub-department, stated that the city will support businesses in accessing green credit funding, encourage the application of clean technologies, and reduce emissions in production. At the same time, the city will promote the development of the carbon market, including forest carbon credit trading activities.

According to Mr. Le Anh Hung, CEO of STI Vietnam Co., Ltd., Da Nang has important ecosystems, including tropical forests and coastal areas, which provide favorable conditions for greenhouse gas reduction projects. Implementing carbon credit exchange and offset mechanisms is considered an important step on the city’s path toward sustainable development.

To promote carbon credit exchanges and offset mechanisms and to develop the carbon market, Da Nang City needs policies that encourage investment in emission-reduction projects and enhance greenhouse gas absorption. The city also needs to create an appropriate infrastructure system to support carbon credit trading, including regulatory and supervisory agencies as well as databases related to greenhouse gas volumes.

Da Nang should closely collaborate with international organizations with expertise in emissions reduction and carbon market development to learn and apply the best solutions. At the same time, the city should create a stable and promising investment environment for investors participating in carbon-reduction projects, provide information and technical support, and encourage businesses and individuals to join the carbon market, contributing to environmental and ecological protection, as proposed by Mr. Hung.