Decree 180/2026/ND-CP on forest carbon sequestration and storage services

DECREE

On forest carbon sequestration and storage services

Pursuant to the Law on Organization of the Government No. 63/2025/QH15;

Pursuant to the Law on Organization of Local Administration No. 72/2025/QH15;

Pursuant to the Law on Forestry No. 16/2017/QH15, amended and supplemented under Law No. 16/2023/QH15, Law No. 31/2024/QH15 and Law No. 146/2025/QH15;

Pursuant to the Law on Environmental Protection No. 72/2020/QH14, amended and supplemented under Law No. 11/2022/QH15, Law No. 16/2023/QH15, Law No. 18/2023/QH15, Law No. 47/2024/QH15, Law No. 54/2024/QH15 and Law No. 146/2025/QH15;

At the proposal of Minister of Agriculture and Environment;

The Government hereby promulgates the Decree on forest carbon sequestration and storage services.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Decree provides regulations on entities, payment methods, payment rates, and the management and use of revenues from forest carbon sequestration and storage services; forest carbon projects; determination of greenhouse gas emission reductions and forest carbon credits supplied.

2. Subjects of application

This Decree applies to state agencies, organizations, households, individuals, and residential communities engaged in activities related to the matters prescribed in Clause 1 of this Article.

Article 2. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Forest carbon sequestration and storage means the absorption of carbon dioxide (CO₂) from the atmosphere through the photosynthetic process of forest trees and the storage thereof in forests.

2. Forest greenhouse gas emissions reductions means the quantity of greenhouse gas emissions reduced and the increase in forest carbon sequestration at a determined point in time compared with a reference point in time, in accordance with domestic forest carbon standards or international forest carbon standards (hereinafter referred to as emissions reductions), expressed in tons of CO₂ or tons of CO₂ equivalent.

3. Forest carbon credits mean carbon credits issued in accordance with domestic forest carbon standards or international forest carbon standards.

4. Forest carbon sequestration and storage services mean the provision of forest greenhouse gas emissions reductions and forest carbon credits.

5. Forest carbon project means a project generating emissions reductions and forest carbon credits from activities involving reducing deforestation and forest degradation; conservation, enhancement of forest carbon stocks, and sustainable forest resource management (REDD+); afforestation and assisted natural regeneration; forest enrichment and tending of natural forests; productivity enhancement and extension of rotation cycles of planted forests; agroforestry practices; and dispersed tree planting.

6. Domestic forest carbon standards mean national forest carbon standards or forest carbon credit generation methodologies in accordance with the Government's regulations on greenhouse gas emissions reduction and ozone layer protection.

7. National forest carbon standards mean provisions prescribing principles, requirements, and methodologies for generating carbon credits from forest greenhouse gas emissions reduction activities and enhancement of forest carbon sequestration, promulgated by competent agencies in accordance with the law on standards and technical regulations.

8. International forest carbon standards mean independent international forest carbon standards or carbon standards and carbon credit generation methodologies established under Article 6.2 arrangements and the Article 6.4 mechanism of the Paris Agreement, in accordance with the Government's regulations on international exchange of emissions reductions and carbon credits.

9. Agreement or contract for the exchange or transfer of emissions reductions and forest carbon credits (hereinafter referred to as the contract) means a written instrument executed between a forest carbon sequestration and storage service provider or a representative of the owner of emissions reductions or forest carbon credits, and a user of forest carbon sequestration and storage services.

Article 3. Principles for provision and use of forest carbon sequestration and storage services

1. Forest carbon sequestration and storage services shall be provided and used in an open, transparent, and accountable manner; promoting balanced interests among the State, forest owners, and relevant stakeholders; and ensuring national defense, national security, and ecological environmental protection.

2. The provision and use of forest carbon sequestration and storage services shall not adversely affect the implementation of international commitments on greenhouse gas emissions reduction to which Vietnam is a contracting party.

3. Emissions reductions and forest carbon credits that have been exchanged or transferred under a contract or through a carbon exchange shall not be further exchanged or transferred by the service provider or the representative of the owner of such emissions reductions or forest carbon credits to other service users.

4. For forests under entire-population ownership, the Ministry of Agriculture and Environment shall act as the representative of the owner of emissions reductions and forest carbon credits generated from forest carbon projects implemented by specialized agencies under the Ministry; provincial-level People’s Committees shall act as the representative of the owner of emissions reductions and forest carbon credits generated from forest carbon projects implemented by specialized agencies under provincial-level People’s Committees (provincial-level specialized agencies); and forest owners shall own emissions reductions and forest carbon credits generated from forest carbon projects implemented themselves.

5. Revenues generated from the exchange or transfer of emissions reductions and forest carbon credits by organizational forest owners with respect to forests under entire-population ownership shall be prioritized for supporting forest protection and development, community livelihoods, development of forest carbon projects, measurement, reporting, and verification activities, and establishment of forestry databases within the province.

6. The exchange or transfer of emissions reductions and forest carbon credits to international markets shall be carried out in accordance with the Government's regulations on international exchange of emissions reductions and carbon credits.

7. Forest owners may cooperate or establish partnerships with organizations and individuals in implementing forest carbon projects; project development, measurement, reporting, verification, and issuance of forest carbon credits; and sharing of emissions reductions and forest carbon credits in accordance with law.

Article 4. Service providers and service users

1. Service providers include:

a) Forest owners as prescribed in Article 8 of the Law on Forestry;

b) Commune-level People’s Committees and other organizations not specified at Point a of this Clause that are assigned responsibility by the State for forest management in accordance with the Law on Forestry.

2. Service users include:

a) Greenhouse gas-emitting facilities allocated greenhouse gas emissions allowances in accordance with Clause 1 Article 5 of the Government's Decree No. 06/2022/ND-CP dated January 07, 2022, providing the mitigation of greenhouse gas emissions and protection of the ozone layer, that voluntarily demand the use of such services to offset emissions exceeding their allocated emissions allowances;

b) Organizations and individuals other than those specified at Point a of this Clause that demand the use of emissions reductions and forest carbon credits;

c) Foreign organizations and individuals lawfully operating in accordance with the law on investment, enterprises, and other relevant laws of Vietnam; organizations established under foreign law; and individuals holding documents evidencing foreign nationality.

Article 5. Requirements for provision and use of forest carbon sequestration and storage services

1. Service providers or owner’s representatives shall satisfy the following requirements:

a) Develop and register forest carbon projects; conduct measurement, reporting, and verification of emissions reductions; and obtain issuance of forest carbon credits in accordance with this Decree;

b) Fulfill obligations relating to contribution of emissions reductions and financial obligations regarding taxes, charges, and fees (if any) in accordance with law;

c) Service provision shall be conducted through exchange or transfer under contracts or through a carbon exchange;

d) Exchange or transfer only the quantity of emissions reductions and forest carbon credits that has been confirmed by the Ministry of Agriculture and Environment in accordance with Clause 3 Article 10 of this Decree.

2. Service users shall satisfy the following requirements:

a) Operate lawfully in accordance with the laws of Vietnam on investment, enterprises, and other relevant laws;

b) Fully perform obligations under contracts prescribed in Clause 1 Article 13 of this Decree or comply with the Government’s regulations on domestic carbon exchange and other carbon exchanges;

c) Fulfill financial obligations regarding taxes, charges, and fees (if any) in accordance with law.

Article 6. Payment methods

1. Direct payment

Service users shall make payments directly to service providers under a contract or through carbon exchange.

2. Indirect payment

Service users shall make entrusted payments to service providers through the forest protection and development fund under contracts prescribed at Points a and b, Clause 1, Article 13 of this Decree or through carbon exchange.

Article 7. Payment rates

1. The payment rate for forest carbon sequestration and storage services shall be an amount denominated in VND per 01 ton of CO₂, 01 ton of CO₂ equivalent, or 01 forest carbon credit. The Minister of Agriculture and Environment shall prescribe the methodology for determining payment rates for forest carbon sequestration and storage services applicable to forests under entire-population ownership.

2. The exchange or transfer price of emissions reductions and forest carbon credits shall be determined under a contract or through a carbon exchange and denominated in VND. Where transfer transactions are conducted overseas, the exchange or transfer price shall be denominated in foreign currency in accordance with the laws of Vietnam on foreign exchange management.

3. Entities prescribed in Clause 1 Article 9 of this Decree shall determine payment rates for forest carbon sequestration and storage services in accordance with Clause 1 of this Article and ensuring that the initial exchange or transfer price for each emissions reduction or forest carbon credit is not lower than the determined payment rate.

4. Principles for determining payment rates for forest carbon sequestration and storage services applicable to forests under entire-population ownership:

a) Ensure coverage of costs for development, registration, measurement, reporting, verification, issuance, and certification of emissions reductions and forest carbon credits; provide support for forest protection and development and livelihood enhancement; fulfill financial obligations in accordance with law; and cover other lawful costs (if any).

b) Align with supply and demand relationships and market conditions at the time payment rates for forest carbon sequestration and storage services are determined.

c) Ensure the lawful rights and interests of the State, organizations and individuals supplying and using emissions reductions and forest carbon credits.

5. Organizations, households, individuals, and residential communities owning forests under Clause 2 Article 7 of the Law on Forestry are encouraged to apply the methodology for determining payment rates for forest carbon sequestration and storage services prescribed in Clause 1 of this Article.

Chapter II

IMPLEMENTATION OF FOREST CARBON PROJECTS AND DETERMINATION OF EMISSIONS REDUCTIONS AND FOREST CARBON CREDITS MADE AVAILABLE FOR SUPPLY

Article 8. Development of forest carbon projects

1. For forests under entire-population ownership:

a) Organizational forest owners may independently implement or cooperate or establish partnerships with other forest owners or organizations to develop forest carbon projects in accordance with domestic forest carbon standards or international forest carbon standards.

b) Forest owners that are households, individuals, or residential communities shall cooperate or establish partnerships with other organizations to develop forest carbon projects in accordance with domestic forest carbon standards or international forest carbon standards.

c) Provincial-level specialized agencies shall develop forest carbon projects for the entire forest area within the local administrative boundary in accordance with domestic forest carbon standards or international forest carbon standards, excluding forest areas for which forest owners have registered projects and forest areas for which specialized agencies under the Ministry have registered projects in accordance with Points a, b, and d of this Clause.

d) Specialized agencies under the Ministry shall develop forest carbon projects for the entire forest area within the administrative boundaries of two or more provinces or cities in accordance with domestic forest carbon standards or international forest carbon standards, excluding forest areas for which forest owners have registered projects and forest areas for which provincial-level specialized agencies have registered projects in accordance with Points a, b, and c of this Clause.

2. For forests not under entire-population ownership as prescribed in Clause 2 Article 7 of the Law on Forestry:

a) Organizational forest owners may independently implement, cooperate, establish partnerships with, or authorize other organizations or other forest owners to develop forest carbon projects in accordance with domestic forest carbon standards or international forest carbon standards.

b) Forest owners that are households, individuals, or residential communities may cooperate, establish partnerships with, or authorize other organizations to develop forest carbon projects in accordance with domestic forest carbon standards or international forest carbon standards.

3. Where forest owners owning forests prescribed in Clause 2 Article 7 of the Law on Forestry have forest areas interspersed with forest areas covered by forest carbon projects developed by provincial-level specialized agencies or specialized agencies under the Ministry, provincial-level specialized agencies shall coordinate with commune-level People’s Committees to review and consolidate lists of forest owners committing to participate according to Form No. 01 (applicable to forest owners that are households or individuals), Form No. 02 (applicable to forest owners that are residential communities), and Form No. 03 (applicable to forest owners that are organizations) in Appendix I to this Decree. Provincial-level specialized agencies shall submit such lists to specialized agencies under the Ministry for forest carbon projects developed by specialized agencies under the Ministry.

Article 9. Registration, amendment, and cancellation of registration of forest carbon projects

1. Entities eligible to register, amend, or cancel registration of forest carbon projects are agencies and organizations that have developed forest carbon projects in accordance with Clauses 1 and 2 Article 8 of this Decree.

2. A dossier for registration or amendment of a forest carbon project under domestic forest carbon standards must comprise:

a) An original application for registration or amendment of a forest carbon project, made according to Form No. 01 provided in Appendix II to this Decree;

b) An original forest carbon project document, made according to Form No. 02 provided in Appendix II to this Decree.

3. Order and procedures for registration, amendment, and cancellation of registration of forest carbon projects according to domestic forest carbon standards

a) Competence to approve registration, amendment, and cancellation of registration of forest carbon projects

The Minister of Agriculture and Environment shall approve registration, amendment, and cancellation of registration for forest carbon projects covering forest areas within the administrative boundaries of two or more provinces or cities.

The Chairperson of the provincial-level People’s Committee shall approve registration, amendment, and cancellation of registration for carbon projects for forest areas within the administrative boundary of a province or city.

b) Order and procedures for registration of forest carbon projects

The agency or organization registering a forest carbon project shall submit one dossier prescribed in Clause 2 of this Article to the Ministry of Agriculture and Environment or the provincial-level People’s Committee by direct submission through the single-window section, via postal service, or online through the national public service portal.

The dossier receiving unit shall check the dossier’s accuracy and completeness and immediately provide response regarding dossier validity for dossiers submitted directly, or within 01 working day for dossiers submitted via postal service or through the national public service portal. Where the dossier is invalid, written notification stating the reasons shall be provided.

Within 01 working day from the receipt of the valid dossier, the specialized agency assigned to advise on project approval shall post the project registration dossier on the Ministry of Agriculture and Environment’s website or the provincial-level People’s Committee's website for broad public consultation for a period of 24 working days.

Within 05 working days after completion of the public consultation period, the specialized agency shall consolidate comments received and provide written notification to the agency or organization submitting the dossier according to Form No. 03 provided in Appendix II to this Decree.

Within 90 working days from receipt of notification from the specialized agency under the Ministry of Agriculture and Environment or the provincial-level People’s Committee, the agency or organization shall finalize the dossier and submit it to the specialized agency together with a project document verification report prepared by a verification entity certified to operate in accordance with the law on conformity assessment, using Form No. 04 provided in Appendix II to this Decree. The time taken by the agency or organization to finalize the dossier shall not be included in the processing time for approval procedures for forest carbon project registration.

Within 03 working days from the date of receipt of the dossier, the specialized agency shall send the dossier to relevant agencies and organizations for comments on the approval of project registration. The consulted agencies and organizations shall give written replies within 08 working days after receiving the dossier for comments.

Within 05 working days from receipt of written comments from relevant agencies and organizations, the specialized agency shall finalize the dossier and submit it to the Minister of Agriculture and Environment or the Chairperson of the provincial-level People’s Committee for consideration and approval of project registration. A dossier must comprise: project document; verification report; written comments from agencies and organizations.

Within 05 working days from receipt of the dossier from the specialized agency, the Minister of Agriculture and Environment or the Chairperson of the provincial-level People’s Committee shall approve registration of the forest carbon project, using Form No. 05 provided in Appendix II to this Decree; issue account to the agency or organization; and disclose the registration information on the national registration system in accordance with the Government's regulations on greenhouse gas emissions reduction and ozone layer protection. In case of refusal, written notification stating the reasons shall be provided.

c) Agencies or organizations seeking to amend the scope or greenhouse gas emissions mitigation activities of a forest carbon project that has already received registration approval shall follow the registration order and procedures prescribed at Point b of this Clause.

d) Cancellation of registration of forest carbon projects

Agencies or organizations that have obtained registration of a forest carbon project and seek cancellation of project registration shall submit an original application for cancellation of forest carbon project registration according to Form No. 06 provided in Appendix II to this Decree to the Ministry of Agriculture and Environment or the provincial-level People’s Committee.

Within 10 working days from receipt of the application for cancellation, the Ministry of Agriculture and Environment or the provincial-level People’s Committee shall cancel the project registration on the national registration system.

Agencies or organizations registering forest carbon projects shall fulfill committed obligations and shall bear responsibility toward relevant parties in accordance with law arising from the decision to cancel project registration.

4. Dossiers, order and procedures for registration, amendment, and cancellation of registration of forest carbon projects under international forest carbon standards shall comply with the Government's Decree No. 112/2026/ND-CP dated April 01, 2026, on the international transfer of greenhouse gas emission mitigation outcomes and carbon credits.

Article 10. Issuance of forest carbon credits and confirmation of emissions reductions and forest carbon credits supplied

1. Issuance of forest carbon credits for forest carbon projects under domestic forest carbon standards

a) The dossier for issuance of forest carbon credits must comprise:

An original application for issuance of forest carbon credits, made according to Form No. 07 provided in Appendix II to this Decree;

An original project emissions reductions report, using Form No. 08 provided in Appendix II to this Decree;

Original verification report on project emissions reductions, using Form No. 09 provided in Appendix II to this Decree;

b) Competence to issue forest carbon credits

The Minister of Agriculture and Environment shall issue forest carbon credits for projects approved by the Ministry of Agriculture and Environment.

The Chairperson of the provincial-level People’s Committee shall issue forest carbon credits for projects approved by the provincial-level People’s Committee.

c) Implementation procedures

The agency or organization registering a forest carbon project shall submit one dossier prescribed at Point b of this Clause to the Ministry of Agriculture and Environment or the provincial-level People’s Committee by direct submission through the single-window section, via postal service, or online through the national public service portal.

The dossier receiving unit shall check the dossier’s accuracy and completeness and immediately provide response regarding dossier validity for dossiers submitted directly, or within 01 working day for dossiers submitted via postal service or through the national public service portal. Where the dossier is invalid, written notification stating the reasons shall be provided.

Within 03 working days from receipt of a valid dossier, the specialized agency assigned by the Ministry of Agriculture and Environment or the provincial-level People’s Committee shall submit to the Ministry or provincial-level People’s Committee a written request for comments from relevant agencies and organizations regarding the dossier. Within 10 working days from receipt of the written request for comments, agencies and organizations shall provide written responses.

Within 05 working days from receipt of comments from relevant agencies and organizations, the specialized agency shall finalize the dossier and submit it to the Minister of Agriculture and Environment or the Chairperson of the provincial-level People’s Committee.

Within 05 working days from receipt of the dossier submitted by the specialized agency, the Minister of Agriculture and Environment or the Chairperson of the provincial-level People’s Committee shall consider and decide on issuing forest carbon credits, using Form No. 10 provided in Appendix II to this Decree; to the agency or organization applying for forest carbon credit issuance. In case of refusal, written notification stating the reasons shall be provided.

2. Dossiers, order and procedures for issuance of forest carbon credits for projects under international forest carbon standards shall comply with Decree No. 112/2026/ND-CP.

3. Confirmation of emissions reductions and forest carbon credits supplied

a) The dossier for confirmation of emissions reductions and forest carbon credits supplied must comprise:

An original application for confirmation of emissions reductions and forest carbon credits supplied, made according to Form No. 11 provided in Appendix II to this Decree;

Original forest carbon project document, made according to Form No. 02 provided in Appendix II to this Decree, or project registration document for forest carbon projects implemented under international forest carbon standards;

An original project emissions reductions report, using Form No. 08 provided in Appendix II to this Decree;

Original verification report on project emissions reductions, using Form No. 09 provided in Appendix II to this Decree;

Decision on issuance of forest carbon credits by the Ministry of Agriculture and Environment or the provincial-level People’s Committee under domestic forest carbon standards, or documents (written records or electronic information) evidencing issuance of forest carbon credits by an international forest carbon standards management organization;

Other relevant documents (if any).

b) Procedures for implementation

The agency or organization registering a forest carbon project shall submit one dossier prescribed at Point b of this Clause to the Ministry of Agriculture and Environment by direct submission through the single-window section, via postal service, or online through the national public service portal.

The dossier receiving unit shall check the dossier’s accuracy and completeness and immediately provide response regarding dossier validity for dossiers submitted directly, or within 01 working day for dossiers submitted via postal service or through the national public service portal. Where the dossier is invalid, written notification stating the reasons shall be provided.

Within 07 working days from receipt of the valid dossier, the specialized agency shall finalize the dossier and submit it to the Minister of Agriculture and Environment.

Within 03 working days from receipt of the dossier submitted by the specialized agency, the Minister of Agriculture and Environment shall consider and confirm emissions reductions and forest carbon credits supplied in accordance with Form No. 12 provided in Appendix II to this Decree; transmit such confirmation to the agency or organization applying for confirmation of emissions reductions and forest carbon credits made available for supply. If confirmation is not granted, written notification stating the reasons shall be provided.

4. In cases involving international exchange or transfer of emissions reductions and forest carbon credits, approval for international transfer shall comply with Decree No. 112/2026/ND-CP.

Article 11. Allocation of nationally determined greenhouse gas emissions reduction targets

1. Allocation responsibilities

a) Based on the updated nationally determined contribution report and provisions of Clauses 2 and 3 of this Article, the Ministry of Agriculture and Environment shall allocate and notify nationally determined greenhouse gas emissions reduction targets for the forestry sector to each province or city.

b) Based on notifications issued by the Ministry of Agriculture and Environment and provisions of Clauses 2 and 3 of this Article, provincial-level People’s Committees shall allocate and notify nationally determined greenhouse gas emissions reduction targets to the entities prescribed in Clause 1 Article 4 of this Decree and notify the Ministry of Agriculture and Environment thereof.

2. Criteria for allocation of greenhouse gas emissions reduction targets include:

a) Forest area;

b) Adjustment coefficients corresponding to emissions reduction contributions based on forest origin and forest condition status;

c) Adjustment coefficients based on the reference rate of natural forest change.

3. Nationally determined greenhouse gas emissions reduction targets shall be allocated in accordance with Appendix III to this Decree.

Article 12. Funding for implementation of forest carbon projects

Funding for development and implementation of forest carbon projects shall be allocated from the state budget; funding for management of forest environmental service revenues; unused carried-forward balances from forest environmental service funding sources remaining as of the effective date of this Decree; mobilized financial support from international sources, organizations, and individuals participating in cooperation or partnerships; and other lawful funding sources to carry out the following activities: development and registration of projects; measurement, reporting, and verification of emissions reductions; issuance of forest carbon credits; and confirmation of emissions reductions and forest carbon credits.

Chapter III

MANAGEMENT AND USE OF REVENUES FROM FOREST CARBON SEQUESTRATION AND STORAGE SERVICES

Article 13. Forms of exchange and transfer

1. Exchange and transfer under contracts

a) The Ministry of Agriculture and Environment shall enter into contracts for the exchange and transfer of emissions reductions and forest carbon credits generated from forest carbon projects implemented by specialized agencies under the Ministry;

b) Provincial-level People’s Committees shall enter into contracts for the exchange and transfer of emissions reductions and forest carbon credits generated from forest carbon projects implemented by provincial-level specialized agencies;

c) Forest owners or authorized organizations shall enter into contracts for the exchange and transfer of emissions reductions and forest carbon credits generated from forest carbon projects implemented by forest owners or other authorized organizations;

d) Contracts for international exchange and transfer of emissions reductions and forest carbon credits shall include the following principal contents: Contract subject matter; exchange or transfer price; quantity; transfer schedule; payment terms; rights and obligations of the parties; contract termination; contract breaches; risk management measures; and dispute resolution.

dd) Contracts for domestic exchange and transfer of emissions reductions and forest carbon credits shall comply with Appendix IV to this Decree.

2. Exchange and transfer of forest carbon credits on the carbon exchange

The exchange and transfer of forest carbon credits on the carbon exchange shall comply with the Government's Decree No. 29/2026/ND-CP dated January 19, 2026, on the domestic carbon exchange and regulations of other carbon exchanges.

Article 14. Management and use of revenues from services under the direct payment method

1. Service providers shall have the right to determine the use of revenues generated from the exchange and transfer of emissions reductions and forest carbon credits after fulfillment of financial obligations relating to taxes, charges, and fees (if any) in accordance with law.

2. For service providers that are organizations, revenues received, after deduction of costs incurred for development and implementation of forest carbon projects; exchange and transfer of emissions reductions and forest carbon credits; payments to forest protection contractors (if any); and financial support for residential communities in buffer zones of special-use forests and residential communities lawfully residing in areas adjacent to protection forests, shall constitute revenue of the organization and shall be managed and used in accordance with financial regulations applicable to the relevant organizational type.

Article 15. Management and use of revenues from services entrusted through the forest protection and development fund

1. Receipt of revenues generated from forest carbon sequestration and storage services

a) The Vietnam Forest Protection and Development Fund shall open an account at a commercial bank to receive revenues and allocate funds to provincial-level forest protection and development funds or units assigned to perform tasks of provincial-level forest protection and development funds (hereinafter referred to as provincial-level forest protection and development funds) for payment to beneficiaries under contracts executed by the Ministry of Agriculture and Environment.

b) Provincial-level forest protection and development funds shall open accounts at commercial banks to receive revenues and make payments to beneficiaries under contracts executed by provincial-level People’s Committees and from funding allocated by the Vietnam Forest Protection and Development Fund.

2. Determination of allocated amounts and payment amounts

a) The Vietnam Forest Protection and Development Fund shall determine amounts allocated to provincial-level forest protection and development funds based on the quantity of emissions reductions or forest carbon credits and forest areas supplied within each province, in accordance with Appendix V to this Decree.

b) Provincial-level forest protection and development funds shall determine payment amounts to forest owners, commune-level People’s Committees, and other organizations assigned by the State with responsibility for forest management based on forest areas supplied, in accordance with Appendix V to this Decree.

3. Use of revenues managed by the Vietnam Forest Protection and Development Fund

a) Administrative management expenditures shall comply with Points a, b, and c, Clause 1, Article 70 of the Government's Decree No. 156/2018/ND-CP dated November 16, 2018, detailing a number of articles of the Law on Forestry, as amended and supplemented under Point a, Clause 30, Article 1 of the Government's Decree No. 91/2024/ND-CP dated July 18, 2024;

b) In addition to expenditures prescribed at Point a of this Clause, up to 3% of total actual revenues collected may be retained to support activities for which the State has not allocated funding or has allocated insufficient funding, including: Activities related to determination of payment rates for forest carbon sequestration and storage services; preparation of forest carbon project dossiers; registration, measurement, reporting, and verification of greenhouse gas emissions reductions; issuance of forest carbon credits; forest investigation, inventory, monitoring of forest changes and forest carbon stocks; strengthening enforcement of the law on forestry; complaint resolution; development of forestry databases; taxes, charges, and fees (if any); and other related expenditures. The specific retention rate and expenditure items shall be decided by the Minister of Agriculture and Environment;

c) The Vietnam Forest Protection and Development Fund shall allocate the remaining balance to provincial-level Forest protection and development funds after deducting expenditures prescribed at Points a and b of this Clause.

4. Use of revenues managed by provincial-level forest protection and development funds

a) Administrative management expenditures shall be implemented in accordance with Points a, b, and c, Clause 2, Article 70 of Decree No. 156/2018/ND-CP, as amended and supplemented under Point b, Clause 30, Article 1 of Decree No. 91/2024/ND-CP, and to support activities for which the State has not allocated funding or has allocated insufficient funding, including: Activities related to determination of payment rates for forest carbon sequestration and storage services; preparation of forest carbon project dossiers; registration, measurement, reporting, verification of emissions reductions, and issuance of forest carbon credits; forest investigation, inventory, monitoring of forest changes and forest carbon stocks; equipment and supplies serving forest protection, forest development, and forest fire prevention and firefighting activities; development of forestry databases within the province; taxes, charges, and fees (if any); complaint resolution; development of guidance materials; strengthening enforcement of the law on forestry; and other expenditures in accordance with regulations. The specific retention rate and expenditure items shall be decided by the provincial-level People’s Committee;

b) Provincial-level forest protection and development funds shall make payments to forest owners, commune-level People’s Committees, and other organizations assigned by the State to manage forests after deducting expenditures prescribed at Point a of this Clause.

c) With respect to revenues received from service users for which beneficiaries cannot be identified or have not yet been identified, provincial-level forest protection and development funds shall follow provisions of Point e, Clause 2, Article 70 of Decree No. 156/2018/ND-CP.

5. Use of revenues by forest owners that are enterprises

Revenues received shall constitute enterprise revenues and shall be managed and used in accordance with the law on enterprise finance.

6. Use of revenues by forest owners that are other organizations

a) Where forest owners that are other organizations do not contract out forest protection activities or contract out protection for only a portion of forest areas, the entire amount received corresponding to self-protected forest areas shall be used for activities serving forest management, protection, and development by such forest owners, with priority given to support for residential communities within buffer zones of special-use forests and residential communities lawfully residing in areas adjacent to protection forests. Support levels, contents, eligibility conditions, and implementation procedures shall comply with Clauses 1, 2, 3, and 4, Article 8 of the Government's Decree No. 58/2024/ND-CP dated May 24, 2024, on a number of policies on investment in forestry, as amended and supplemented under Article 38 of the Government's Decree No. 42/2026/ND-CP dated January 26, 2026, amending and supplementing a number of articles of Decrees in the forestry and forest ranger sectors.

The remaining amount shall comply with Point c, Clause 3, Article 70 of Decree No. 156/2018/ND-CP, as amended and supplemented under Point c, Clause 30, Article 1 of Decree No. 91/2024/ND-CP. In addition, forest owners may use funding for activities for which the State has not allocated funding or has allocated insufficient funding, including: Support for transition of agricultural production models toward integrated forestry, agriculture, and aquaculture systems on land planned for forestry production; development and implementation of forest carbon projects; activities related to land allocation, forest allocation, issuance of certificates of land use rights and ownership of land-attached assets; biodiversity conservation; agricultural extension and forestry extension activities; promotion of product consumption; study visits and experience-sharing activities; and development of conventions, regulations, and commitments for enforcement of the law on forestry.

b) Forest owners that are other organizations contract out forest protection activities, shall comply with Point d, Clause 3, Article 70 of Decree No. 156/2018/ND-CP, as amended and supplemented under Point c, Clause 30, Article 1 of Decree No. 91/2024/ND-CP. In addition, forest owners may use management funding for activities for which the State has not allocated funding or has allocated insufficient funding, including: Development and implementation of forest carbon projects; study visits and experience-sharing activities; and development of regulations and commitments for enforcement of the law on forestry.

7. Forest owners that are households, individuals, or residential communities may use the entire amount of revenues received for forest management, protection, development, and improvement of living conditions.

8. Commune-level People’s Committees and other organizations assigned by the State to manage forests as prescribed by law shall use revenues received in accordance with Clause 4 Article 70 of Decree No. 156/2018/ND-CP, as amended and supplemented under Article 28 of Decree No. 42/2026/ND-CP.

9. Tax obligations arising from transfer transactions involving emissions reductions and forest carbon credits under this Decree shall be implemented in accordance with relevant tax laws.

Article 16. Preparation and approval of financial plans; disbursement, payment, settlement, and reporting regime

1. Preparation of financial plans for revenues from forest carbon sequestration and storage services

a) Before October 31 annually, based on contracts executed by the Ministry of Agriculture and Environment, the Vietnam Forest Protection and Development Fund shall prepare the financial plan for the immediately following year, using Form No. 01 provided in Appendix VI to this Decree; submit it to the Management Council of the Vietnam Forest Protection and Development Fund for approval; and submit it to the Minister of Agriculture and Environment or the head of the specialized agency assigned by the Ministry for approval in accordance with Form No. 03 provided in Appendix VI to this Decree.

b) Based on the notice of allocated amounts issued by the Vietnam Forest Protection and Development Fund and contracts executed by provincial-level People’s Committees, provincial-level forest protection and development funds shall prepare financial plans according to Form No. 02 provided in Appendix VI to this Decree; submit them to the Management Council of the provincial-level forest protection and development fund for approval; and submit them to the Chairperson of the provincial-level People’s Committee or the head of the assigned provincial-level specialized agency for approval in accordance with Form No. 03 provided in Appendix VI to this Decree.

2. Approval competence

a) The Minister of Agriculture and Environment or the head of the specialized agency assigned by the Ministry shall approve financial plans for the Vietnam Forest Protection and Development Fund.

b) The Chairperson of the provincial-level People’s Committee or the head of the assigned provincial-level specialized agency shall approve financial plans for provincial-level forest protection and development funds.

3. Disbursement and payment

a) Vietnam Forest Protection and Development Fund

Before December 31 annually, based on actual revenues collected during the fiscal year, deposit interest (if any), forest areas supplying services, and notifications of emissions reductions or forest carbon credits issued by the Ministry of Agriculture and Environment, the Director of the Vietnam Forest Protection and Development Fund shall determine funding amounts and allocate them to provincial-level forest protection and development funds.

b) Provincial-level forest protection and development funds

Before December 31 annually, based on actual revenues collected during the fiscal year, deposit interest (if any), and forest areas supplying services, the Director of the provincial-level forest protection and development fund shall determine payment amounts to forest owners, commune-level People’s Committees, and other organizations assigned by the State to manage forests.

Before March 31 of the immediately following year, provincial-level forest protection and development funds shall make payments to forest owners, commune-level People’s Committees, and other organizations assigned by the State to manage forests.

c) Organizational forest owners contracting out forest protection activities

Before June 1 annually, based on amounts actually received from provincial-level forest protection and development funds, organizational forest owners contracting out forest protection activities shall determine payment amounts payable to forest protection contractors and make payments to such contractors in accordance with forest protection contracts executed between the parties.

d) Payment methods: Payment shall be made through bank accounts, fund transfers through postal service providers, or other non-cash payment methods in accordance with law.

4. Settlement of revenues from forest carbon sequestration and storage services shall comply with Clause 4 Article 71 of Decree No. 156/2018/ND-CP, as amended and supplemented under Clause 31 Article 1 of Decree No. 91/2024/ND-CP, and Article 29 and Clause 1 Article 34 of Decree No. 42/2026/ND-CP.

5. Reporting regime on management and use of revenues from forest carbon sequestration and storage services

a) Annually, the Vietnam Forest Protection and Development Fund shall submit a semiannual report before June 30 and an annual report before December 20 on service provision results to its direct supervisory agency for consolidation and reporting to the Ministry of Agriculture and Environment, using Form No. 04 provided in Appendix VI to this Decree; and shall notify service users of the service payment disbursements before December 31 annually, using Form No. 05 provided in Appendix VI to this Decree;

b) Annually, provincial-level forest protection and development funds shall submit a semiannual report before June 15 and an annual report before December 10 on local service provision results to their direct supervisory agencies and the Vietnam Forest Protection and Development Fund, using Form No. 04 provided in Appendix VI to this Decree; and shall notify service users of the service payment disbursements before December 31 annually, using Form No. 05 provided in Appendix VI to this Decree;

c) Before November 30 annually, forest owners that are organizations shall report service provision results to their direct supervisory agencies and submit reports to provincial-level forest protection and development funds for consolidation, using Form No. 04 provided in Appendix VI to this Decree; and, in cases of direct payment, shall notify service users of the service payment disbursements using Form No. 05 provided in Appendix VI to this Decree.

d) Before November 15 annually, commune-level People’s Committees and other organizations assigned by the State to manage forests shall submit reports on service provision results to provincial-level forest protection and development funds for consolidation, using Form No. 04 provided in Appendix VI to this Decree.

6. Independent auditing

a) Annually, forest protection and development funds at all levels shall select independent audit units to conduct operational audits of revenues from services in accordance with law;

b) Funding for audit activities shall be sourced from management funding of forest protection and development funds at each level, as prescribed at Point a Clause 3 Article 15 of this Decree (for the Vietnam Forest Protection and Development Fund) and Point a Clause 4 Article 15 of this Decree (for provincial-level forest protection and development funds).

Article 17. Inspection, monitoring, and financial disclosure

Inspection, monitoring, and financial disclosure shall be conducted in accordance with Article 72 of Decree No. 156/2018/ND-CP, as amended and supplemented under Decree No. 42/2026/ND-CP.

Chapter IV

IMPLEMENTATION ORGANIZATION

Article 18. Implementation responsibilities

1. The Ministry of Agriculture and Environment shall

a) Organize implementation; provide guidance, conduct inspections, and address issues arising within its competence;

b) Develop national forest carbon standards; establish systems for measurement, reporting, and verification of emissions reductions; and confirm emissions reductions and forest carbon credits supplied;

c) Negotiate and execute contracts and organize exchange and transfer of emissions reductions and forest carbon credits on the carbon exchange in accordance with this Decree; coordinate with service users in addressing issues arising within its competence or submit matters to competent authorities for consideration and resolution in accordance with the laws of Vietnam and relevant international practices and commitments;

d) Manage and ensure implementation of nationally determined emissions reduction contributions in the forestry and land-use sectors nationwide;

dd) Develop, manage, and operate the database on forest carbon sequestration and storage services; consolidate and report implementation results of forest carbon sequestration and storage services in accordance with regulations.

2. The Ministry of National Defence and the Ministry of Public Security shall coordinate with the Ministry of Agriculture and Environment in management, guidance, approval, and supervision of implementation of forest carbon sequestration and storage services in strategic areas and critical zones related to national defense, security, state secrets, and military secrets.

3. Relevant ministries and sectors shall, within the scope of their assigned functions and duties, coordinate with the Ministry of Agriculture and Environment in organizing implementation of this Decree.

4. Provincial-level People's Committees shall

a) Organize implementation; direct and expedite implementation; conduct inspections; and address issues arising within localities according to their competence;

b) Negotiate and execute contracts and organize exchange and transfer of emissions reductions and forest carbon credits on the carbon exchange in accordance with this Decree; coordinate with service users in addressing issues arising within its competence or submit matters to competent authorities for consideration and resolution in accordance with the laws of Vietnam and international practices;

c) Manage and ensure implementation of nationally determined emissions reduction contributions in the forestry sector within localities; approve, inspect, and supervise forest carbon projects implemented by forest owners or other organizations responsible for project implementation within localities;

d) Before December 15 annually, report to the Ministry of Agriculture and Environment on implementation of forest carbon sequestration and storage services within localities.

5. Commune-level People’s Committees shall

a) Participate in inspection and supervision of forest carbon projects implemented by forest owners or other organizations within commune-level administrative areas;

b) Participate in handling issues arising during implementation of forest carbon projects within commune-level administrative areas or report such issues to competent authorities for resolution.

Article 19. Effect

1. This Decree takes effect from July 15, 2026.

2. In case the legal documents referred to in this Decree are amended, supplemented or replaced by other documents, the amending, supplementing or replacing ones shall prevail.

Article 20. Transitional provisions

1. The remaining funding sources arising during implementation of the Government's Decree No. 107/2022/ND-CP dated December 28, 2022, on the pilot transfer of emission reductions and financial management under the Emission Reductions Payment Agreement for the North Central region, and the Government's Resolution No. 261/NQ-CP dated August 29, 2025, on transfer of surplus greenhouse gas emissions reductions for the North Central Region for the 2018 - 2019 period, shall continue to be managed and used in accordance with this Decree from January 01, 2027.

For funding sources disbursed to commune-level People’s Committees and other organizations assigned by the State to manage forests before January 01, 2027, financial plans shall be prepared in accordance with Points d and dd Clause 3, Article 9 and settlement shall be conducted in accordance with Point d Clause 1 and Point d Clause 2 Article 12 of Decree No. 107/2022/ND-CP and submitted to commune-level People’s Councils for approval.

2. Contracts for transfer of emissions reductions and forest carbon credits executed before the effective date of this Decree shall continue to be implemented in accordance with the executed contracts.