[Research Report] Release of Survey Results on CO2 Absorption Capacity and Economic Effects of Major Plantation Species in Vietnam

Carbon Zero Global Inc. (Headquarters: Minato-ku, Tokyo; Representative Director: Daiki Oka; hereinafter "Carbon Zero Global") has released a research report on the CO2 absorption capacity and economic effects of major plantation tree species in Vietnam. This report comprehensively analyzes the environmental value and economic profitability brought by plantation species, especially hybrid acacia, based on research data from Associate Professor and Dr. Ngo Dinh Que and others at the Research Centre for Forest Ecology and Environment, Vietnamese Academy of Forest Sciences.

■ Background of the Report Release

With the global acceleration of decarbonization, the carbon credit market is expanding rapidly. Reducing greenhouse gas emissions is no longer an "option" for companies but a "condition for survival and growth." Concrete initiatives are required to connect environmental measures to new revenue generation and economic circulation, rather than treating them merely as costs or burdens.

Under these circumstances, Vietnam is one of the countries with extremely high potential for forest carbon credit business, possessing abundant forest resources, diverse tree species, a young workforce, and experience in implementing forestry projects. Vietnam has ratified the United Nations Framework Convention on Climate Change (UNFCCC), established a national focal point for the Clean Development Mechanism (CDM)*1 in 2003, and launched a CDM advisory group in 2004, making steady progress in institutional development.

Focusing on this potential in Vietnam, Carbon Zero Global is promoting the forest carbon credit business in the country. This report is released to demonstrate the scientific basis and economic validity of the Vietnam forest projects undertaken by the company.

■ Overview of the Research Report

This report is based on two studies conducted by the Research Centre for Forest Ecology and Environment, Vietnamese Academy of Forest Sciences.

Part 1: CO2 Absorption Capacity of Major Plantation Species in Vietnam

In a study by Associate Professor Dr. Ngo Dinh Que and his team, trees (branches, leaves, trunks, roots, litter) and soil were analyzed at plantation sites across Vietnam to measure the amount of carbon (C) and calculate the amount of CO2 absorbed. The target tree species included hybrid acacia, Acacia mangium, Acacia auriculiformis, resin pine, and Eucalyptus urophylla.

Part 2: Evaluation of Growth and Economic Effects of Hybrid Acacia in Quang Tri Province

In a study by Mr. Tran Duy Luong of the Vietnamese Academy of Forest Sciences, the growth characteristics and economic profitability of hybrid acacia were evaluated based on actual plantation data in Cam Lo village, Quang Tri province.

■ Key Findings

1. CO2 Absorption Capacity of Major Plantation Species
As a result of investigations at plantation sites across Vietnam, it was confirmed that each tree species possesses a high CO2 absorption capacity. Calculations based on NIRI (Nissho Iwai Research Institute) standards yielded the following results.

In particular, hybrid acacia has been shown to absorb 330 tons of CO2 per hectare in its 8th year when planted at a density of 1,400 trees per hectare in the Cam Lo district, revealing that it can create high environmental value in a short period.

Furthermore, a strong correlation between the biological production volume (tree growth amount) of each tree species and the amount of CO2 absorbed was confirmed. For hybrid acacia, the correlation equation Y = 1.90Z + 0.18 was established.