Completing documents to submit to the Government on the emission reduction purchase agreement for the Central Highlands and South Central Coast

DNVN - The Ministry of Agriculture and Rural Development is completing documents to submit to the Prime Minister for consideration of negotiating and signing an Emission Reduction Purchase Agreement for 11 provinces in the Central Highlands and South Central regions with the Forest Finance Enhancement Organization (Emergent).

Speaking at the opening ceremony of the workshop “Forest Carbon - Potential to create new financial sources for forest protection and development” on the morning of October 3, Director of the Forestry Department Tran Quang Bao said that Vietnam is a member of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. Vietnam has shown a strong commitment to reducing greenhouse gas emissions, especially at COP26 in 2021 with a commitment to bring net emissions to “0” by 2050.

This commitment opens up new opportunities for the forestry sector in establishing and operating financial mechanisms to mobilize international and domestic resources, through market development and promoting the exchange of forest carbon credits. Forestry is currently the only sector with the potential to achieve negative net emissions, thanks to the process of forest protection and development of the entire political system and the support of international partners.

However, the forest carbon market in Vietnam is still in its early stages of development, facing many difficulties and challenges.

Workshop “Forest Carbon - Potential to create new financial sources for forest protection and development”.

According to the Department of Climate Change ( Ministry of Natural Resources and Environment ), Vietnam is currently implementing only one program to transfer emission reduction results and forest carbon credits through the Emission Reduction Payment Agreement for 6 provinces in the North Central region with the World Bank. As a result, it has successfully transferred 10.3 million tons of CO2 and received 51.5 million USD in the period 2018-2019.

Currently, the Ministry of Agriculture and Rural Development is completing documents to submit to the Prime Minister for consideration and negotiation to sign an Emission Reduction Purchase Agreement for 11 provinces in the Central Highlands and South Central Coast with the Forest Finance Enhancement Organization (Emergent).

The forest carbon market has the potential to generate large revenues for forestry, helping to invest in forest protection, create jobs, increase income for local people; protect and improve environmental quality. However, financial resources for forestry activities are still difficult and unstable, meeting only a small part of the actual needs of the industry.

At the workshop, Mr. Pham Hong Luong - Deputy Director of the Forestry Department said that the Department has identified a number of key tasks to promote market development and commercialization of forest carbon credits in the coming time. These include reviewing and updating the nationally determined contribution in the forestry sector; researching the potential and allocating quotas for emission reduction and carbon sequestration from forests to localities.

At the same time, perfect the policy institutions on the transfer and financial management of revenue from forest carbon credits. Develop Vietnam forest carbon standards, a methodology for calculating emission reduction results and a system for measuring, reporting, and assessing the amount of emission reduction and increasing carbon absorption of forests; guide the development and pilot implementation of a number of potential projects.

At the same time, promote and enhance capacity for stakeholders on forest carbon; continue to implement the Emission Reduction Payment Agreement with the World Bank. Advise on negotiations, signing and implementation of the Emission Reduction Purchase Agreement for the Central Highlands and South Central Coast with the Emergent Organization; strengthen cooperation and mobilize international resources and the private sector.

For localities, the Forestry Department proactively mobilizes and integrates legal resources to implement measures to reduce emissions and increase absorption in forestry in the province. Call for active participation and contributions from agencies, organizations, businesses and experts to promote the sustainable development of the forest carbon market in Vietnam.

“The cooperation and commitment of all stakeholders will be the decisive factor for the success of the forestry industry in the new context,” Mr. Luong emphasized.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/hoan-thien-ho-so-trinh-chinh-phu-ve-thoa-thuan-mua-ban-giam-phat-thai-cho-tay-nguyen-nam-trung-bo/20241003104158622