What are the principles to build forest environment and CO2 indexes? Prof. Pham Van Dien, deputy director general of the Vietnam Administration of Forestry (VNFOREST) The forest environment index would be a measure of the capacity to decrease CO2 emissions while simultaneously increasing absorption. A key part of this is forest carbon stock, the amount of carbon that has been sequestered from the atmosphere and is stored within the forest ecosystem. Comparing the forest environment index with actual emissions will help set payments for reducing emissions and establish a market for international emissions trading for sellers, buyers, and intermediaries alike. Regarding the CO2 index, I believe there are two theoretical avenues that can be taken. The index can either concern the carbon emissions of each facility separately, with the upper limit being the emissions quota allotted for them, or look at the net emissions of the entire market and carbon credit created by the decreases in emissions and increased absorption capacity achieved by managing the ecosystem. At the same time, the two indicators need to be built with a mind to ensure economic growth while promoting forest protection, benefiting buyers, sellers, and farmers alike. How will these indices promote carbon trading? They will be the basic building bricks to developing the domestic carbon market, making it possible to exchange carbon credit within the bounds of domestic regulations and international commitments. Reduction targets are forecast to drive carbon credit supply below demand, making the market more animated. The forest environment and CO2 indexes will motivate provinces to better manage their forests, while manufactures with net emissions will be encouraged to upgrade technology and switch to renewable energy to stay within their allotted quotas and avoid charges. What can Vietnam learn from the experience of other countries in managing carbon emission? …
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