BENEFIT - SHARING MECHANISM FROM FOREST CARBON CREDIT TRANSFER: INTERNATIONAL EXPERIENCES AND POLICY IMPLICATIONS FOR VIETNAM

Abstract

To achieve the objective of net - zero emissions by 2050 and other targets related to forest conservation and deforestation reduction, Vietnam, alongside numerous developing countries under the REDD+ framework, has engaged in the voluntary carbon market through transactions of forest carbon credits derived from forest protection and anti-deforestation initiatives. A fundamental prerequisite for participation in the carbon market and eligibility for results-based payments for emission reductions is the establishment of an equitable and transparent benefit-sharing mechanism for stakeholders entitled to greenhouse gas (GHG) emission reductions. However, the design and operationalization of this benefit-sharing mechanism in Vietnam remain in a nascent, pilot phase and are fraught with challenges. This study employs a rigorous analytical approach, drawing on primary data from Vietnam’s legal and regulatory framework alongside secondary data concerning the implementation of the Emission Reductions Payment Agreement (ERPA) across six provinces in the North Central region. The study critically evaluates the current state of benefit - sharing mechanisms in Vietnam, identifying key challenges and gaps in policy execution. Furthermore, utilizing a comparative legal research methodology, the paper examines the best international practices in benefit-sharing arrangements to extract relevant insights. Based on these findings, the study proposes strategic policy recommendations aimed at enhancing the regulatory and institutional framework governing benefit-sharing from forest carbon credit transactions in Vietnam.