Concerned that the CO2 "treasure" hidden deep in the forest will lose value over time, the Ministry of Agriculture and Rural Development proposes transfer authority

The report of the Ministry of Agriculture and Rural Development stated that on October 22, 2020, the Ministry of Agriculture and Rural Development and the International Bank for Reconstruction and Development (IBRD) of the World Bank (WB) group signed the North Central Region Greenhouse Gas Payment Agreement (ERPA).

On December 11, 2023, the Ministry of Agriculture and Rural Development transferred 10.3 million tons of CO2 to the World Bank; on December 20, 2023, the World Bank issued a letter confirming the transfer of about 95% of the transferred emission reduction transfer (GPT) results to Vietnam to contribute to the NDC as committed in the ERPA.

On October 6, 2023, the WB sent an Official Letter to the Ministry of Agriculture and Rural Development confirming the GPT results of the North Central region in the period of 2018 - 2019 reaching 16.21 million tons of CO2, of which the GPT amount transferred to the WB under the ERPA was 10.3 million tons of CO2. According to the signed ERPA, the WB has the right to purchase an additional maximum of 5 million tons of CO2, at a price of 5 USD/ton of CO2, about 95% of the transfer results are transferred back to Vietnam to contribute to the NDC.

Currently, the WB is proposing to purchase an additional 1 million tons of CO2 from the GPT results of the North Central region in the period of 2018 - 2019. The Ministry of Agriculture and Rural Development has reported to the Prime Minister , proposing a plan to transfer an additional 1 million tons of CO2 to the WB according to the signed ERPA and proposed to handle 4.91 million tons of CO2 of the period of 2018 - 2019. At the same time, it organized to collect opinions from ministries and People's Committees of 06 provinces in the North Central region on the plan to transfer an additional 1 million tons of CO2 to the WB according to the provisions of Decree No. 107/2022/ND-CP and proposed to handle 4.91 million tons of CO2.

Based on comments, in the report sent to the Prime Minister, the Ministry of Agriculture and Rural Development clearly stated the authority to transfer the remaining GPT greenhouse gas volume in the period 2018 - 2019.

Specifically, the transfer of 1 million tons of CO2 to the WB is part of the additional GPT of up to 5 million tons of CO2 under the signed ERPA, and the Government has assigned the authority to the Ministry of Agriculture and Rural Development to represent the Government of Vietnam and forest owners in 6 provinces in the North Central region to transfer to the WB during the ERPA implementation period.

For the remaining 4.91 million tons of CO2 from GPT, the WB does not propose to buy more, Vietnam has the right to transfer to other potential partners.

Currently, the Ministry of Agriculture and Rural Development has not received any proposals from domestic and foreign organizations and partners regarding the exchange or transfer of this GPT amount. Vietnam can use this GPT amount to contribute to the national NDC.

The Ministry of Agriculture and Rural Development proposed that the Prime Minister allow the Ministry of Agriculture and Rural Development to continue to transfer an additional 1 million tons of CO2 to the World Bank under the signed ERPA. This is also the authority granted by the Government to the Ministry of Agriculture and Rural Development on behalf of the Government of Vietnam and forest owners in 06 provinces in the North Central region to transfer to the World Bank during the ERPA implementation period. In addition, the GPT transfer results are the results created in the past (2018 - 2019 period), so it is very difficult to find other partners to conduct exchanges and trade, and if left for a long time, the value will depreciate over time.

For the remaining GPT (4.91 million tons of CO2), in case a partner proposes to exchange and trade, the Ministry of Agriculture and Rural Development recommends that the Prime Minister assign the Ministry of Agriculture and Rural Development to study and propose a plan to manage and use this revenue source, consult with the Ministry of Finance, the Ministry of Natural Resources and Environment and 06 North Central provinces to report to the Prime Minister for consideration and decision to ensure that it does not affect the results of contributions to the NDC.

In case there is no agreement from the Prime Minister on the transfer of the remaining GPT of the North Central region in the period of 2018 - 2019 (including 01 million tons of CO2 as proposed by the WB and the remaining 4.91 million tons of CO2), the Ministry of Agriculture and Rural Development is allowed to send an Official Letter to the WB regarding the non-transfer of an additional 01 million tons of CO2. When there are results of the assessment and summary of the implementation results of Decree No. 107/2022/ND-CP, the Ministry of Agriculture and Rural Development shall propose a management and use plan for the remaining GPT and report to the Prime Minister for consideration and decision.

Source: https://danviet.vn/lo-ngai-kho-bau-co2-an-sau-trong-rung-de-lau-se-mat-gia-bo-nnptnt-de-xuat-tham-quyen-chuyen-nhuong-20240830152721176.htm