Bamboo Capital Group founds BCG Eco to advance sustainable development goals

The Bamboo Capital Group (HoSE: BCG) has announced its decision to invest in the establishment of BCG Eco, a company specializing in forestry, forest care, and seedling cultivation. The move is part of its strategic efforts to pursue sustainable development goals and seize significant opportunities in the promising carbon credit market.

BCG Eco will focus on forestry activities, forest care, and the cultivation of forestry seedlings. It has charter capital of VND20 billion ($800,580), with Bamboo Capital contributing VND5 billion ($200,120), or 25 per cent of the capital, and BCG Land, a subsidiary of Bamboo Capital, contributing 26 per cent. The investment comes from Bamboo Capital’s own funds. BCG Eco’s headquarters will be located alongside Bamboo Capital’s in Thao Dien ward, Thu Duc city, Ho Chi Minh City.

At the 2024 annual general meeting, Mr. Nguyen Ho Nam, Group Chairman and Chairman of the Strategic Council of BCG, said BCG is accelerating its ESG (environmental, social, governance) journey by implementing leading modern platforms to monitor, analyze, and evaluate carbon emissions across its member companies. Its sustainability reports are increasingly being held to higher and stricter standards, forming a crucial part of its green and sustainable development plan.

In line with the Group’s sustainable development strategy, BCG Eco was established to enhance environmental protection activities, tap into the potential of the carbon credit market, and promote ESG initiatives.

The carbon credit market is becoming an increasingly lucrative business sector globally, and Vietnam is following this trend. With the growing severity of climate change and environmental issues, countries and businesses are focusing more on reducing carbon emissions. At COP26, the Vietnamese Government committed to achieving net-zero emissions by 2050, creating significant opportunities for the development of a carbon credit market.

According to Decree No. 06/2022/ND-CP, which outlines the roadmap for the development and implementation of a domestic carbon market, Vietnam will focus on building regulations for managing and operating a carbon market to 2027. By 2028, a carbon credit exchange is expected to be operational. This will mark a critical milestone in Vietnam’s efforts to achieve its net-zero commitment, while also opening up substantial opportunities for pioneering businesses in carbon credit development and trading.

Vietnam’s forestry sector successfully sold 10.3 million forest carbon credits in 2023, equivalent to 10.3 million tons of CO₂, through the World Bank. With a selling price of $5 per ton of absorbed carbon, the total value of the contract stood at $51.5 million. This highlights the significant potential of the carbon credit market.

Recognizing this potential, BCG Eco has thoroughly prepared to capitalize on opportunities in Vietnam’s carbon credit market. With strong backing from the Bamboo Capital Group and advice from experienced international partners, BCG Eco is leveraging this preparatory phase to build capacity and develop reforestation projects.

Additionally, BCG Eco aims to become an independent consultancy, offering comprehensive solutions to businesses seeking to participate in the carbon credit market, promote ESG initiatives, and expand sustainable development-related activities.

The establishment of BCG Eco is a key component of Bamboo Capital’s long-term strategy to drive sustainable development and create lasting value for shareholders, partners, and the community.

With the support of ongoing policy and regulatory developments, BCG Eco is poised to deliver significant economic and social value, contributing to Vietnam’s goal of achieving net-zero emissions by 2050.