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Circular No. 31/2026/TT-BNNMT guidelines on the methodology for determining payment rates for Forest carbon sequestration and storage Services in Vietnam
Circular No. 31/2026/TT-BNNMT guidelines on the methodology for determining payment rates for Forest carbon sequestration and storage Services in Vietnam
On July 15, 2026, the Ministry of Agriculture and Environment of Vietnam issued Circular No. 31/2026/TT-BNNMT, which stipulates methods for forest valuation, provides guidelines for establishing forest price frameworks, and outlines methods for determining payment rates for forest carbon sequestration and storage services.
The circular stipulates methods for determining the value of natural forests and planted forests and provides guidelines for establishing a pricing framework for forests under public ownership; it also sets forth a method for determining payment rates for forest carbon sequestration and storage services for forests under public ownership.
Method for determining payment rates for Forest Carbon Sequestration and Storage Services
There are two methods for determining payment levels:
- Cost-based method: The payment level for forest carbon credits is determined based on costs of implementing the forest carbon project; costs for supporting conservation, and livelihood development; and taxes, fees, and charges (if any) required to generate each forest carbon credit.
- Comparison method: The payment rate is determined as the arithmetic mean of the payment rates from at least 3 reference projects with comparable conditions regarding carbon credit generation activities, applicable carbon standards, and the intended use of the credits.
Payment Rates for Forest Carbon Sequestration and Storage Services
The payment rate for contract negotiations or listing on a carbon exchange is the higher of the two rates determined using the cost-based method and the comparative method.
If the payment rate determined by the comparative method is not eligible for determination, the rate for negotiation or listing on a carbon exchange shall be based on the cost method.
In conclusion, Circular 31/2026/TT-BNNMT establishes a more transparent and consistent framework for determining the price of forest carbon credits in community-owned forests, serving as the basis for setting prices for negotiations and transactions. Although the scope of the Circular focuses on publicly owned forests, the pricing methods and principles may also serve as a useful reference for forest-owning enterprises in developing pricing strategies, projecting revenue, and assessing the feasibility of forest carbon credit projects.
View the full text of Circular 31/2026/TT-BNNMT at the Link.
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