Vietnam has received over $41 million from the World Bank to sell forest carbon credits, equal to 80 percent of the committed amount under the Emission Reductions Payment Agreement.
At a workshop held in Hanoi on September 27, Tran Quang Bao, director of the Forestry Department under the Ministry of Agriculture and Rural Development (MARD), said the World Bank has transferred $41.2 million to Vietnam for the country's CO2 emissions.
The Emission Reductions Payment Agreement (ERPA) signed between Vietnam and the World Bank’s Forest Carbon Partnership Facility in October 2020, means Vietnam could receive up to $51.5 million if the country can reduce 10.3 million tonnes of CO2 emissions from six north central provinces.
"Accordingly, Vietnam will transfer to the World Bank 10.3 million tonnes, at a price of $5 per tonne and 95 percent of this amount will be counted as Nationally Determined Contributions (NDC) contribution. To date, legal procedures and preparations have been ready," Bao said.
The agreement is part of Vietnam's first regional level Reducing Emissions from Deforestation and Forest Degradation (REDD+). It is expected to reduce 32.09 million tonnes of carbon, including emissions reduction and forest carbon sequestration.
In 2019-2024, ERPA aims to cut 26 million tonnes of carbon while the World Bank is committed to buying 10.3 million tons of CO2 equivalent, equivalent to $51.5 million.
Realizing the emission reduction commitments under its National Determined Contributions, Vietnam aims to use national resources to reduce 15.8 percent of emissions, equivalent to 146 million tonnes of CO2. The figures can be raised to 43.5 percent and 403 million tonnes with international support.
At present, Vietnam has made firm commitments to the international community in the fight against climate change as it signed the Paris Agreement on climate change in 2015, targets to cut emissions to net zero by 2050, and engages in various initiatives such as REDD+ and Glasgow Leaders’ Declaration on Forests and Land Use.
The North Central Region Emission Reductions Programme in 2018 to 2025 covers the six provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien-Hue with a total area of 5.15 million ha and a population of 10.5 million people. The north-central region contains most of the country’s remaining broadleaf evergreen forest and biodiversity areas with critical importance to the world.