Vietnam’s Selling Price of $5 per Carbon Credit Acceptable: Ministry

The Vietnamese Ministry of Agriculture and Rural Development has denied many people’s assumption that Vietnam is selling carbon credits too cheaply, at $5 per carbon credit, local media reported.

Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri argued that $5 per forest carbon credit is the voluntary sale price, which is always lower than the mandatory sale price. He added that the price level of $5 per credit was set in 2018 based on survey results at that moment, but it is still acceptable at present.

Backing Mr. Tri, Director of the Institute of Strategy and Policy on Natural Resources and the Environment Nguyen Dinh Tho said that the $5 per credit price is a medium level, not low. He explained that carbon credits are mostly sold on the basis of REDD+ (reducing emissions from deforestation and forest degradation), under which carbon credits are traded at $1.6-8.9 per credit worldwide.

Deputy Director of the Vietnam Fund for Forest Protection and Development Le Van Thanh estimated that in 2021-2030, Vietnam would own 40 million-70 million carbon credits each year, which could be sold to the world carbon credit market. If the country can do this well, it would be able to collect tens of trillions of VND from forest carbon credit transfers. (VietnamNet)