Nghe An promotes carbon market in forestry

Proactively entering the carbon credit market with a strong technical foundation

To participate in the carbon market, Nghe An must meet the most important requirement, which is the MRV system (monitoring, reporting, and verification of carbon) that is transparent and accurate. To meet the requirements of this system, Nghe An is investing heavily in digital transformation for forest management, including the application of satellite imagery to monitor forest changes, the development of a synchronized forestry database spanning from province to commune, and the deployment of modern forest management software. Natural forest areas are allocated to communities for management, contributing to the maintenance of forest cover and reducing encroachment risks.

At the same time, the province is promoting the issuance of Sustainable Forest Management Certification (FSC). The FSC-certified plantation forest area is expanding rapidly, creating opportunities to access the clean timber market and, in particular, voluntary carbon credits under VCS or Gold Standard. This is a significant competitive advantage, as the demand for carbon credits from international enterprises continues to increase.

In addition to technical requirements, Nghe An is developing a strategy to access the forest carbon market at the provincial level. Some forest areas with high potential for additional biomass, especially protection forests and special-use forests, have been selected for pilot implementation. The province is also orienting towards completing the benefit-sharing mechanism to ensure that communities directly responsible for forest protection receive income proportional to carbon credit revenue.

According to Nguyen Danh Hung, Deputy Director of the Department of Agriculture and Environment of Nghe An, many domestic and international enterprises are exploring opportunities to cooperate in developing forest carbon projects in Nghe An. This attention provides the province with additional technical and financial resources as well as international experience to develop high-quality carbon projects.

Along with potential voluntary-standard projects, Nghe An is also preparing conditions to participate in the mandatory domestic carbon credit market expected to operate from 2028 under Decree 06/2022 of the Government. This requires the province to standardize all forest data, update biomass stock maps, establish a real-time monitoring system, and integrate data with the national greenhouse gas emission system. Early preparation not only helps Nghe An avoid technical risks but also creates advantages when enterprises begin seeking domestic credits to offset emissions.

Improving local livelihoods through forest carbon credits

Revenue from carbon credits is expected to become a new economic driver, helping mountainous communities improve their livelihoods from forest-based activities. Currently, people’s income mainly comes from contracted forest protection or harvesting non-timber forest products, which remains unstable and sensitive to market fluctuations.

In September, the Nghe An Provincial People’s Committee approved the list of 19 communities in Muong Long and Huoi Tu communes eligible to receive benefits in 2025 from the North Central Region Emission Reduction Payment Agreement (ERPA).

Previously, the Nghe An Provincial People’s Committee issued Decision 42/2025/QD-UBND revising and supplementing the forest protection payment rate under ERPA revenue, increasing it from VND 500,000/ha/year to VND 800,000/ha/year. This adjustment aims to ensure balanced benefits for forest-protecting communities, enhance motivation to engage in forest stewardship, and reduce pressure on professional forest protection forces in patrolling, managing and preventing violations.

Nghe An is also studying a benefit-sharing model based on the actual contribution level of communities to emission reduction. Communities achieving strong forest protection results, reducing deforestation and forest fires, will receive a higher proportion, creating a clear incentive mechanism. At the same time, the province is considering using part of the carbon credit revenue to invest in essential infrastructure such as roads, domestic water supply or schools, which have direct impact on residents' quality of life.

If the carbon credit market operates stably, revenue from credit transactions could become a significant supplement for forest-dependent communities. Many experts believe that with extensive natural forest areas and a high forest cover rate, Nghe An has the potential to generate hundreds of thousands of carbon credits annually if opportunities are leveraged effectively.

Enhancing the capacity of local officials, especially skills in remote sensing tools, GIS technology, carbon data processing and understanding international standards, is considered a decisive factor in helping Nghe An keep up with global trends.

However, participation in the carbon market also presents many challenges. Measurement and certification costs are relatively high, technical requirements are strict, and the legal framework for the domestic carbon market is still being finalized. Nevertheless, these are primarily technical barriers and can be addressed if the province has a clear roadmap, gradually adopts international standards and leverages support from international organizations.

* $1 = VND 26.403 - Source: Vietcombank.