Having collected 1,200 billion VND from selling carbon credits to the World Bank, Vietnam still has surplus to sell to other partners.

According to information from the World Bank (WB) on March 21, Vietnam has received a payment of 51.5 million USD (equivalent to about 1,200 billion VND) for verified emission reduction results (carbon credits) due to limiting deforestation and forest degradation (commonly known as REDD+) and enhancing carbon storage through afforestation and reforestation.

Vietnam is known to be the first country in the East Asia Pacific region to receive emission reduction-based payments from the World Bank's Forest Carbon Partnership Facility (FCPF).

This payment was transferred to Vietnam for reducing 10.3 million tons of carbon emissions for the period from February 1, 2018 to December 31, 2019.

This is the largest single payment ever made from the FCPF for high-quality, verified emissions reductions. The money 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.

Đã thu 1.200 tỷ đồng từ bán tín chỉ carbon cho WB, Việt Nam còn thừa để bán cho các đối tác khác- Ảnh 1. — According to the World Bank, Vietnam has received a payment of 51.5 million USD (equivalent to about 1,200 billion VND) thanks to the sale of 10.3 million forest carbon credits. In the photo: The patrol team, removing traps of Cat Tien National Park on the way to perform the task. Photo: VFBC.

According to Minister of Agriculture and Rural Development Le Minh Hoan, 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.

Notably, Vietnam has achieved emissions reductions exceeding the contracted volume with 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 Contribution (NDC) 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 region is also home to 12% of Vietnam’s population, including 13 ethnic minority groups and many forest-dependent communities. Nearly a third of the region’s population lives below the national poverty line.

Through improved forest management, investment in the forestry sector and strengthening agricultural policies, the program helps increase both the extent and quality of forest cover in partnership with local communities.

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