Gia Lai forestry targets forest carbon credit market

Large forest carbon storage capacity

Gia Lai possesses a rich forest ecosystem, with more than 692,000 ha of natural forests, over 294,000 ha of planted forests, and recoverable land areas, creating favorable conditions for developing multi-purpose forestry models.

In particular, the province is home to the Kon Ha Nung Plateau Biosphere Reserve, with a total area of over 413,511 ha, which was recognized by UNESCO in 2021. The Reserve is divided into functional zones, including core, buffer, and transition areas, featuring distinctive ecosystems, rich biodiversity resources, and habitats for many rare flora and fauna of high conservation value. This is a core advantage for Gia Lai in developing forest economic models linked to biodiversity conservation, forest environmental services, and carbon credits.

According to Mr. Nguyen Van Hoan, Deputy Director of the Gia Lai Department of Agriculture and Environment, the province is currently developing a project to expand large timber plantations for the 2026–2030 period, covering an area of 20,170 ha. In addition to the potential to expand forest area on unused land and barren hills, Gia Lai also aims to maintain stable forest coverage by replanting after harvesting, ensuring continuity of the forestry production cycle.

"For the 2026–2030 period, Gia Lai plans to undertake new afforestation and post-harvest reforestation on a total area of approximately 125,000 ha of planted forests, thereby contributing to increasing forest cover and sustainably developing the forest economy. In addition, the potential for developing forest environmental services, ecotourism, non-timber forest products, and especially forest carbon sequestration and storage is substantial, providing a basis for generating new income sources for the forestry sector," Mr. Hoan said.

According to Mr. Hoan, beyond its natural advantages, Gia Lai is also located in a national key region for forestry development and for implementing greenhouse gas emission reduction commitments. This creates favorable conditions for the province to participate in national and international programs and projects on forest carbon credits.

"Additionally, the Central Government's policy framework on sustainable forestry development, payment for forest environmental services, and the carbon market is gradually being refined, creating a legal corridor for the locality to implement modern forest economic models," Mr. Hoan added.

Enhancing forest economic efficiency

Mr. Hoan expressed expectations that the Ministry of Agriculture and Environment is currently implementing key international cooperation programs, especially the LEAF/LEAD program on emission reduction through enhanced forest finance in the Central Highlands and South Central regions. Through this program, Viet Nam is negotiating the transfer of a significant volume of forest carbon credits to international partners, opening up opportunities to generate new revenue streams for Gia Lai province.

"In Gia Lai province, activities related to surveying, verification, and appraisal of emission reductions have been carried out with the participation of various international organizations, consulting units, and specialized agencies. At the same time, many domestic enterprises are also proposing carbon credit projects, conducting surveys, collecting data, and developing project documentation, such as ASEAN and ECOTREE companies," said the Deputy Director of the Gia Lai Department of Agriculture and Environment.

These signals indicate that the carbon credit market is gradually taking shape and attracting strong investor interest, creating significant opportunities to develop a multi-value forest economy. Besides, growing market demand for sustainably certified timber and environmentally friendly forestry products is opening up prospects to enhance the value of forestry production.

Advances in science and technology, particularly digital technologies in forest management, are also facilitating the development and implementation of projects related to carbon credits.

In response to this trend, forestry companies in Gia Lai are actively engaging. For instance, Song Kon Forestry Co., Ltd. (Vinh Thanh commune, Gia Lai) is formulating plans to develop large timber forest plantations linked with carbon credits to increase revenue and enhance the value of planted forests.

According to Mr. Nguyen Ngoc Dao, Chairman of Song Kon Forestry Co., Ltd., in the coming period, the company will continue to maintain and stably develop large timber production forests through 2030, with a total area of 1,000 ha. The company will also review its existing forestry land fund and select sites with suitable ecological conditions for large timber forest development. Priority will be given to fast-growing plant species with high economic value, strong biomass accumulation, and high carbon sequestration capacity, such as hybrid acacia, Pterocarpus macrocarpus Kurz, and Erythrophleum fordii. The business cycle will be extended to 10–12 years or longer to develop large timber products.

"We are focusing on assessing the carbon sequestration and storage capacity of large timber forests, developing documentation and databases, and monitoring forest growth to serve carbon measurement, reporting, and verification (MRV). We will also coordinate with specialized agencies, organizations, and enterprises to participate in domestic and international carbon credit programs and projects, gradually establishing stable income sources from carbon credit trading, thereby improving the economic efficiency of the forest economy," said Mr. Nguyen Ngoc Dao, Chairman of Song Kon Forestry Co., Ltd.