Bamboo Capital afforestation arm teams up with int’l partners to tap carbon credit market

BCG Eco, the afforestation arm of Vietnam’s Bamboo Capital Group, has signed a partnership agreement with Singapore’s Capital Quantum and Corects, two world's leading entities in the field of carbon credits and climate finance.

The collaboration will help BCG Eco scale up its carbon credit projects and connect with international markets, while also stepping up Bamboo Capital's sustainable development goals and contributing to promoting a green economy in Vietnam, the group said in a release.

As the issue of climate change gains urgency, the development of carbon markets has emerged as a key tool to boost green transition.

It was in this context that BCG Eco was established – to enhance environmental protection work, tap the carbon credit market’s potential and promote ESG (environmental, social, and governance) initiatives.

BCG Eco’s main operations include forestry, forest care and the nurturing of forestry seedlings. As an independent consultancy, it aims to offer comprehensive solutions for businesses looking to participate in the carbon credit market while expanding its sustainable development initiatives.

Bamboo Capital and BCG Eco have implemented specific strategies, from project development to seeking credible international partners towards jointly developing carbon credit projects.

International standard carbon credit value chain

All parties in the latest collaboration – BCG Eco, Capital Quantum, and Corects – have stated their commitment to building a sustainable and comprehensive carbon credit ecosystem.

Their goal is to create a closed-loop value chain, from developing carbon emission reduction projects to carbon credit transactions.

Under the agreement, BCG Eco will leverage the expertise and experience of Bamboo Capital in renewable energy and environmental sectors. It will take the lead in providing in-depth knowledge and consultancy on the carbon credit market standards in Vietnam.

The company will also produce high-quality carbon credits for sale in Singapore, while exploring opportunities in carbon credit trading markets in Vietnam, Singapore and Laos.

Capital Quantum, is a pioneer in developing carbon credit platforms in Singapore. It is currently working closely with the Global Carbon Council (GCC).

Recently, together with its joint venture partner in the country, it signed a framework agreement with the Papua New Guinea Forestry Authority to implement Article 6.2 of the Paris Agreement - the UN framework convention on climate change.

Through its partnership with Capital Quantum, BCG Eco will benefit from international experience and advanced technologies that the former has developed through leading projects in Singapore.

The Singaporean firm will support BCG Eco and Corects in managing, monitoring and reporting on carbon credits.

With Capital Quantum ensuring accurate and transparent measurement in accordance with international requirements, carbon credits from joint projects will be able to meet necessary standards for international trading.

Corects (Carbon Offset and Renewable Energy Consultancy, Technology and Solutions), specializes in providing consultancy services for the development of carbon credit projects, as well as supporting certification and auditing processes.

With extensive experience in providing carbon credit consultancy and implementing carbon projects, it will play a crucial role in helping BCG Eco implement internationally compliant projects through advanced data analytics solutions.

It will also provide guidance for companies like BCG Eco on exploring new carbon markets and expanding trading capabilities.

Sustainable development commitment

The partnership with Capital Quantum and Corects marks an important step forward for BCG Eco in realizing its development goals.

It is not only a commercial partnership but also a move that underscores Bamboo Capital's strong commitment to sustainable and green development, the group's release said.

Climate change is increasingly impacting people’s lives and destabilizing economies. In response to the ongoing emergency, countries have initiated actions to reduce greenhouse gas emissions and develop carbon credit markets. At the 26th UN Climate Change Conference (COP 26) in the UK in 2021, Vietnam made its first commitment to achieve net-zero emissions by 2050.

This goal has been incorporated into the National Strategy on Climate Change for 2050 under the Prime Minister’s Decision No. 896/QD-TTg dated July 26, 2022.

Carbon credit markets are considered one of the most effective tools to help Vietnam achieve this target. Experts believe that developing carbon credit markets will not only bring economic benefits but also help transition Vietnam from a “brown” economy to a “green” one.

The shift will not only enhance Vietnam's position on the global stage but also attract attention and investment from international organizations and businesses.

The Vietnamese carbon credit market is forecast to continue growing strongly in 2024, with a projected growth rate of up to 20% due to pressures from international agreements such as the Paris Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The "Carbon Market Development in Vietnam" project based on Decree No. 06/2022/ND-CP, currently under development, stipulates greenhouse gas emission reductions and ozone layer protection.

From 2028 onwards, Vietnam plans to officially operate a carbon credit exchange, connecting the domestic market with regional and global markets.