Lai Chau lays the foundation for forest carbon credit development

Unlocking the potential of forests

The Lai Chau Department of Agriculture and Environment, in collaboration with the CARE organization, has launched the project "Capacity Building for Implementing Climate Change Mitigation Plans and Mobilizing Sustainable Finance for Forest Protection and Development, Including the High-Quality Forest Carbon Market - Carbon for Good (C4G)."

The project is implemented by CARE, the Center for International Forestry Research (CIFOR), and the University of British Columbia (UBC, Canada), with support from the Government of Canada. It is being carried out in four provinces, including Tuyen Quang, Lai Chau, Son La, and Can Tho. This project represents a major step toward readiness for participation in the economic market for forest carbon credits, contributing to the development of a sustainable forestry economy and Vietnam's goal of achieving net-zero emissions.

In addition, the initiative aims to strengthen climate change adaptation and promote sustainable forest management. The project’s objectives are to leverage Canada's expertise in forestry management and combine it with local capacities to establish a high-quality, transparent, and efficient forest carbon market in Vietnam.

According to Mr. Nguyen Thanh Dong, Deputy Director of the Lai Chau Department of Agriculture and Environment, the province currently has more than 501,000 ha of forests, including over 458,000 ha of natural forests, about 29,600 ha of planted forests, and 12,900 ha of rubber plantations.

In the context of increasingly severe climate change, this year's dry season is forecast to bring many cold days with low humidity, heightening the risk of forest fires. As a mountainous province with a sparse population, most local residents have yet to develop strong awareness of forest protection, partly because they have not seen tangible economic benefits from forests.

Therefore, the C4G project is expected to create a new direction that links forest protection goals with economic development, enabling local people to earn legal income from forest carbon values while encouraging communities to join hands in preserving the "green lungs" of the Northwest region.

Laying the foundation for the carbon credit market

Running until March 2028, the C4G project is part of Canada's commitment to supporting Vietnam in developing a high-quality forest carbon market, aiming at  climate change adaptation and impact mitigation.

Ms. Le Kim Dung, Country Director of CARE in Vietnam, stated that this initiative not only contributes to biodiversity conservation but also opens up opportunities for investment cooperation, green job creation, and inclusive socio-economic development at the local level.

Amid the global transition toward a low-carbon economy, the carbon credit market is considered a key economic tool that helps countries both achieve their net-zero emission target and generate new revenue sources from environmental protection activities.

Vietnam is in the process of establishing a legal framework for this market, which is expected to come into operation in the coming years. Therefore, Lai Chau's proactive participation in projects such as C4G is regarded as a strategic preparatory step.

The project aims to strengthen climate governance in a nature-positive direction while promoting the participation of private units in financing and developing forest-based carbon projects. A distinctive feature of C4G is its approach of "combining local knowledge with innovative solutions to cope with climate change and ensure that community voices, especially those of ethnic minority women, are heard in decisions related to forest and climate management."

Under the C4G model, forest-dependent communities are not merely beneficiaries but central partners in governance and monitoring. When forest carbon values are quantified clearly and transparently, local people can receive economic benefits from forest protection.

According to Ms. Dung, the C4G project focuses on four key result groups. First, assessing forest carbon potential through detailed studies of carbon sequestration and storage capacity in each area, serving as the basis for quantifying and issuing carbon credits in the future.

Second, evaluating the feasibility of emission reduction, enabling provinces, including Lai Chau, to proactively develop appropriate plans to meet national greenhouse gas emission reduction targets.

Third, developing market-ready data profiles that clearly outline each locality's potential for forest carbon credit development, thereby attracting investment once the market officially comes into operation.

Fourth, enhancing the professional capacity of officials, businesses, and forest owners through training courses on carbon credit valuation, project development, and market risk and opportunity assessment.

Connecting knowledge

Another key component of the project is multi-stakeholder collaboration among management agencies, international organizations, private units, and local communities, aimed at developing a carbon model that is locally inclusive, environmentally sustainable, and economically feasible.

Ms. Dung affirmed that with technical support from the Government of Canada, the project can fully leverage Canada’s leading expertise in forestry management and carbon market development and expand cooperation in areas such as monitoring–reporting–verification (MRV) technologies, digital solutions, carbon project development and investment, sustainable wood value chains, carbon certification, landscape restoration, and forest fire prevention.

In the next three years, C4G will work closely with local governments, enterprises, and communities to promote sustainable forest management and climate-adaptive reforestation and create alternative income opportunities for forest-dependent households.

According to Mr. Ha Trong Hai, Vice Chairman of the Lai Chau Provincial People’s Committee, with its high forest coverage rate and diverse ecosystems, the province has great potential to become a locality that meets the requirements of the forest carbon credit market. Once the national carbon market mechanism is in operation, projects like C4G will help Lai Chau quickly adapt, generate new revenue sources for the local budget, and contribute to the province's goals of green growth and low emissions.

Lai Chau provincial leaders believe that once the project is implemented, the green forests will not only serve as "environmental regulators" but also open up new livelihood opportunities for local residents. Transforming forests into assets with carbon value is a modern approach, shifting the resource management mindset from exploitation to conservation, with clear economic benefits.