In the context of increasingly severe climate change, ‘carbon credits’ serve as an important tool, both contributing to the reduction of greenhouse gas emissions and opening up new revenue streams from land and forests.
These credits are typically generated from activities such as afforestation, forest protection, land restoration, or sustainable agricultural practices.
“Green Gold Mine” from Land and Forests
Currently, there are over 14.7 million hectares of forest, with a coverage rate of 42%. This is an important “natural capital” for participating in the carbon market. There is also a commitment to achieve net-zero emissions by 2050. To achieve this goal, developing a carbon market is an essential step.
Programs to reduce deforestation and forest degradation, afforestation and reforestation, or enhanced forest management are precisely the doors opening up exploitation opportunities. This market not only helps businesses meet emission reduction requirements but also generates income for communities associated with forests.
Carbon credits can be considered a “green gold mine” if exploited correctly. Instead of viewing forests and land only as traditional resource extraction sources, linking them to carbon value will help local communities, farmers, and forest owners gain additional sustainable livelihoods.
Furthermore, by leveraging the potential of land and forests effectively, it is entirely possible to become an attractive destination for carbon credit investors, contributing to global emission reduction goals while bringing practical socio-economic benefits.
Solutions for the Future
In the current context, developing the carbon market along with carbon credit exchange and offset mechanisms is seen as an essential solution for reducing greenhouse gases at reasonable costs, while promoting clean technology, enhancing business competitiveness, and improving income for communities participating in emission reduction and forest protection projects.
To obtain carbon credits, businesses and farming households need to implement measures such as afforestation on bare land, restoring and enhancing forest productivity, changing land use purposes, or applying emission reduction technologies.
For carbon credits to truly become a development driver, focusing on several directions is necessary. First is the parallel development of mandatory and voluntary markets, prioritizing the voluntary market in the immediate term.
In the initial stage, the voluntary market plays an important role, creating a “testing ground” for businesses while promoting social awareness of the value of carbon credits. Subsequently, a gradual transition to a mandatory market with a stricter legal framework can occur.
Second, connecting the domestic market with the international one. Interconnection will help enhance liquidity, increase the value of credits, and create opportunities for deeper participation in the global carbon value chain, attracting green capital flows from international corporations.
Alongside carbon credits, tools such as carbon taxes, emission quotas, or Emissions Trading Systems (ETS) need to be considered for synchronized application. This combination creates motivation for technological innovation while limiting market manipulation risks.
Applying digital technology to measure, monitor, and bring transparency to the carbon credit verification process.
Digital platforms, blockchain technology, and AI can support the measurement, monitoring, and transparency of the entire carbon credit verification process. This is an important factor for strengthening investor confidence, avoiding fraud, and enhancing the credibility of the market.
Data shows that China, the US, and India are leading the world in greenhouse gas emissions. Meanwhile, 33% of the global land area has been degraded, affecting the lives of over 3 billion people. International reports estimate the annual economic and environmental losses caused by land degradation range from 6.4 to 11 trillion USD.
This indicates that sustainable land management is not only an ecological necessity but also an economic equation. When land is restored and forests are protected, CO2 storage capacity increases, which means generating carbon credits for trading on the international market.
The Secretary of the Ho Chi Minh City Party Committee suggested that the Con Dao special zone needs to pay attention to green finance, carbon credits, and electric taxis in Con Dao.