FOREST CARBON CREDITS – A SUSTAINABLE OPPORTUNITY FOR BUSINESSES  

As the global transition toward a green economy and lower greenhouse gas emissions continues to gain momentum, Decree No. 180/2026/ND-CP marks an important step in completing Vietnam’s legal framework for forest carbon sequestration and storage services. Besides promoting forest protection, the Decree also creates new opportunities for businesses to participate in the carbon market, supporting sustainable growth and strengthening their competitiveness.

1. Opportunities for businesses

Decree No. 180/2026/ND-CP provides businesses with new opportunities to advance their sustainability goals.

First, businesses may use carbon credits to support their greenhouse gas reduction efforts and meet the growing environmental expectations of international partners and export markets.

In addition, businesses may cooperate with forest owners and other relevant organizations to invest in and develop forest carbon projects in accordance with the law. This not only creates new business opportunities but also enhances a company’s image as a responsible and environmentally conscious business.

In the long term, early participation in the carbon market will help businesses better prepare for the full implementation of Vietnam’s carbon credit trading mechanism.

2. Key Legal Considerations

While forest carbon credits offer significant opportunities, businesses should ensure that their activities comply with the applicable legal requirements.

First, businesses should verify that carbon credits are legally generated and properly certified by the competent authorities. This is essential to reduce legal and commercial risks during transactions.

Second, when participating in forest carbon projects, businesses should clearly define the rights and obligations of each party in their agreements, particularly with respect to the ownership, use and allocation of benefits arising from carbon credits, in order to minimize potential disputes.

Third, the supply and use of carbon credits must comply with Vietnamese law and should not affect Vietnam’s commitments to reducing greenhouse gas emissions.

3. How Should Businesses Prepare?

To make the most of the opportunities offered by the carbon market, businesses should begin their preparations as early as possible.

They should first assess their demand for carbon credits and evaluate whether participating in forest carbon projects is suitable for their business operations.

At the same time, businesses should develop a greenhouse gas management strategy and strengthen the collection and maintenance of environmental data to support future verification when required.

In addition, regularly monitoring new regulations on the carbon market and seeking legal advice when necessary will help businesses reduce legal risks and ensure compliance throughout the implementation process.