The World Bank (WB) announced on March 21 that Vietnam has received a payment of 51.5 million USD for verified emission reduction results ("Carbon credits") from reducing deforestation and forest degradation (commonly known as REDD+) and enhancing carbon storage through afforestation and reforestation.
New approach in forest development investment
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| Vietnam receives $51.5 million from WB for emission reduction through forest conservation |
According to the World Bank, Vietnam is the first country in the East Asia Pacific region to receive payments based on emissions reduction results from the organization's Forest Carbon Partnership Fund (FCPF).
This payment was made to Vietnam for the reduction of 10.3 million tonnes of carbon emissions for the period from 1 February 2018 to 31 December 2019. This is the largest single payment from the FCPF for a high-quality, verified emission reduction outcome. The payment will benefit 70,555 forest owners and 1,356 forest-adjacent communities, divided according to a broad benefit-sharing plan developed through a transparent, multi-stakeholder consultation process.
The success of the REDD+ program brings Vietnam closer to implementing its ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement on Climate Change, while protecting important areas for biodiversity conservation, said Vietnam’s Minister of Agriculture and Rural Development Le Minh Hoan. Vietnam has achieved emissions reductions beyond the volume contracted to the FCPF and can sell these excess emissions reductions to third parties through bilateral agreements or the carbon market. Vietnam can also use these excess emissions reductions for its Nationally Determined Contributions (NDCs) or retain them for its climate targets.
“This landmark payment marks another step for Vietnam to participate in the global carbon credit market and opens up a new opportunity to finance the country’s ambitious climate commitments and targets,” said World Bank Country Director for Vietnam Carolyn Turk.
According to the WB, the program has generated 16.2 million verified emission reductions for the 2018-2019 period, 5.9 million more than the volume of 10.3 million in the Emission Reduction Payment Agreement. The WB has notified Vietnam of the exercise of the right to purchase an additional 1 million emission reductions beyond the contract quantity.
Vietnam’s emission reduction program protects the country’s tropical forests, which cover 3.1 million of the 5.1 million hectares of land in the program area. These forests are ecologically important and include five internationally recognized conservation corridors. The area is also home to 12% of Vietnam’s population, including 13 ethnic minority groups and many forest-dependent communities.
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