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

Carbon Zero Global Inc. (Headquarters: Minato-ku, Tokyo; Representative Director: Hiroki Oka; hereinafter referred to as "Carbon Zero Global") has released a research report on the CO2 absorption capacity and economic effects of major afforestation species in Vietnam. This report comprehensively analyzes the environmental value and economic profitability brought about by afforestation species, including hybrid acacia, based on research data from Associate Professor/Dr. Ngo Dinh Que and his team at the Forest Ecology and Environment Research Center, Vietnam Forest Science Institute.

Background of Report Release With the acceleration of global decarbonization, the carbon credit market is rapidly expanding. Greenhouse gas reduction is no longer an "option" for companies but a "condition for survival and growth," and concrete initiatives are required to connect environmental measures not just to costs or burdens, but to the creation of new financial resources and economic circulation.

Amidst this, Vietnam is one of the countries with extremely high potential for forest carbon credit projects, possessing abundant forest resources, diverse tree species, a young workforce, and experience in implementing forestry projects. Vietnam has also been advancing its institutional framework, having 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.

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

Overview of the Research Report This report is structured based on two studies conducted by the Forest Ecology and Environment Research Center, Vietnam Forest Science Institute.

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

In a study by Associate Professor/Dr. Ngo Dinh Que and his team, CO2 absorption was calculated by measuring the amount of carbon (C) in trees (branches, leaves, trunk, roots, leaf litter) and soil at afforestation sites across Vietnam. The target species included hybrid acacia, Acacia mangium, Acacia auriculiformis, Pinus merkusii, and Eucalyptus urophylla.

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

In a study by Mr. Tran Duy Luong of the Vietnam Forest Science Institute, the growth characteristics and economic profitability of hybrid acacia were evaluated based on actual afforestation data in Cam Lo village, Quang Tri Province.

Key Research Findings

1. CO2 Absorption Capacity of Major Afforestation Species The results of surveys at afforestation sites across Vietnam confirmed that each tree species possesses high CO2 absorption capacity. Calculations based on NIRI (Nissho Iwai Research Institute) standards yielded the following results:

Specifically, hybrid acacia showed results of absorbing 330 tons of CO2 per hectare by the 8th year when 1,400 trees were planted per hectare in the Cam Lo district, revealing its ability to create high environmental value in a short period.

Furthermore, a strong correlation was confirmed between the biological productivity (tree growth) of each species and its CO2 absorption amount. For hybrid acacia, the correlation formula is Y = 1.90Z + 0.18