Consulting services for applying for carbon credits for investment projects

Article overview

Applying for carbon credits for investment projects is an important step to help businesses contribute to efforts to mitigate global climate change while creating economic value from emission reduction activities. Through this process, businesses can accurately assess the amount of greenhouse gasses reduced from the project, thereby building a sustainable development strategy and optimizing benefits from the carbon market. In the article below, Long Phan will provide customers with detailed information about consulting services for applying for carbon credits for investment projects.

Consulting on applying for carbon credits for investment project owners
Consulting on applying for carbon credits for investment project owners

What are carbon credits?

Carbon credits are certificates of the right to emit greenhouse gasses, especially CO2. Each credit represents 1 ton of CO2 or equivalent greenhouse gas allowed to be released into the atmosphere. The main goal of carbon credits is to reduce emissions from industrial activities, contributing to limiting global climate change.

Carbon credits are sustainable financial instruments that can be traded on the carbon market. Businesses can buy credits from emission reduction units to offset the amount of greenhouse gasses they emit. This mechanism creates economic incentives for clean projects and emissions reduction activities.

 Carbon credit concept
Carbon credit concept

Conditions and procedures to apply for carbon credits

Conditions for granting credit

Pursuant to Article 18 of Decree No. 06/2022/ND-CP, the Ministry of Natural Resources and Environment confirms carbon credits and greenhouse gas emission quotas traded on the exchange, including:

  • The amount of carbon credits obtained from programs and projects according to the domestic and international carbon credit exchange and offset mechanism is consistent with the provisions of law and international treaties to which Vietnam is a member. pellets;
  • Greenhouse gas emission quotas are allocated according to the provisions of Clause 2, Article 12 of Decree No. 06/2022/ND-CP.

Pursuant to Article 20 of Decree No. 06/2022/ND-CP, subjects building and implementing programs and projects according to the carbon credit exchange and offset mechanism include:

  • Vietnamese organizations have a need to develop and implement programs and projects.
  • Foreign organizations wishing to develop and implement programs and projects in Vietnamese territory.

Procedures for applying for carbon credits

The process for validating carbon credits and traded emissions quotas includes:

  • Submit the application form via the online public service system.
  • The Ministry of Natural Resources and Environment verifies and issues a certificate within 15 working days.

Procedures for registering carbon credit exchange and offset programs and projects:

  • The Ministry of Natural Resources and Environment will notify the validity of the application within 5 working days.
  • Evaluate documents and get opinions from relevant agencies within 30 working days.
  • Decide to approve the project within 3 working days after receiving the evaluation results.

Enterprises must report annually on project implementation status.

Some notes that arise in practice when applying for a carbon certificate

Pay attention to facilities and human resources

To implement carbon credits, businesses need:

  • Reform the database system and synchronize maps.
  • Additional human resources specializing in forest carbon, transactional English and remote sensing.
  • Apply VERRA’s VCS standards if making internal credits.
  • Choose an independent appraisal unit from VCS’s portfolio.
  • Build a consistent measurement and appraisal system combined with measurement.

Notes on implementation processes related to forestry enterprises

The process of implementing carbon credits for forestry enterprises includes:

  • Determine credit types, standards and potential of the project area.
  • Sign a memorandum of understanding with relevant parties.
  • Develop investment policy and submit it to the Forestry Department.
  • Determine the amount of credits contributing to the country and business.
  • Develop registration dossiers and reports according to standard forms.
  • Document appraisal by an independent third party.
Notes arising when applying for a carbo certificate
Notes arising when applying for a carbo certificate

Consulting services for applying for carbon credits for investment projects in Long Phan

At Long Phan, we provide comprehensive consulting and support services on applying for carbon credits for investment projects. Long Phan’s services include:

  • Consulting on assessing the project’s emission reduction potential;
  • Support in choosing appropriate emission calculation methods;
  • Support in developing registration documents for carbon credit exchange and offset programs/projects;
  • Consulting on establishing a greenhouse gas emissions monitoring system;
  • Support in implementing credit application procedures at state management agencies;
  • Consulting on choosing an independent appraisal unit;
  • Support explanations and additional documents as required;
  • Consulting on carbon credit transactions in the market.

Applying for carbon credits is a complex process, requiring in-depth knowledge of environmental law and emission assessment techniques. To ensure compliance with regulations and optimize benefits from carbon credits, customers should consider using professional consulting services. Long Phan is ready to support customers throughout the process of applying for and trading carbon credits. Please contact us immediately via hotline 0906735386 for a free consultation and detailed quote.