70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam receives US$51.5 million from World Bank for forest emission reduction
Ngoc Mai 17:32, 2024/03/21
Vietnam becomes the first country in the East Asia Pacific region to receive a results-based payment from the World Bank’s Forest Carbon Partnership Facility (FCPF).

Vietnam has received a $51.5 million payment for verified emissions reductions, or carbon credits, for reducing deforestation and forest degradation (commonly known as REDD+) and for enhancing carbon stored in forests through reforestation and afforestation.

 Ca Mau Forest from above. Photo: The Hanoi Times

Vietnam becomes the first country in the East Asia Pacific region to receive a results-based payment from the World Bank’s Forest Carbon Partnership Facility (FCPF).

The payment was made to Vietnam to reduce 10.3 million tons of carbon emissions between February 1, 2018, and December 31, 2019. It is the largest single payment to date made by the FCPF for verified and high-integrity carbon credits. The payment will benefit 70,055 forest owners and 1,356 communities near the forest, to be distributed according to a robust benefit-sharing plan designed through a consultative, participatory, and transparent process.

 “The success of this REDD+ program brings Vietnam closer to delivering on our ambitious Nationally Determined Contributions under the Paris Agreement while protecting areas of vital importance to biodiversity conservation,” said Vietnam Minister of Agriculture and Rural Development Le Minh Hoan.

Vietnam is already generating emission reductions in excess of the volume contracted with the FCPF and can sell the credits to third-party buyers through bilateral agreements or carbon markets. The country can also use the excess credits to fulfill its Nationally Determined Contributions or retire them, which is a net climate benefit.

“This landmark payment marks another step for Vietnam towards joining the global carbon credit market and opens a new opportunity to finance the country’s ambitious climate commitments and targets,” said World Bank Country Director for Vietnam Carolyn Turk.

The program generated 16.2 million verified emission reductions between 2018 – 2019, which is 5.9 million more than the 10.3 million contract volume in the Emission Reduction Payment Agreement.  The World Bank has issued a call option notice to buy an additional 1 million emission reductions beyond the contracted amount.

Vietnam’s emission reduction program protects most of the country’s tropical forests, covering 3.1 million of the 5.1 million hectares of land in the program area. These forests are of significant ecological importance, encompassing 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. Almost one-third of people in the region live below the national poverty line. Through improved forest management, investment in the forest sector, and enhancement of agricultural policies, the program is increasing both the extent and quality of forest cover in collaboration with local communities.

The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples' organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+.

Launched in 2008, the FCPF has worked with 47 developing countries across Africa, Asia, Latin America, and the Caribbean, along with 17 donors who have made contributions and commitments totaling $1.3 billion.

TAG: Vietnam news vietnam things to know Vietnam World Bank vietnam forest emission reduction
Other news
11:02, 2024/07/13
Mobile Money users in Vietnam surpass 8.8 million
After the initial pilot phase, the Government issued Resolution No. 192 to extend the trial of the Mobile Money service until December 31, 2024.
16:14, 2024/07/12
Hanoi to host dialogue on challenges of social housing and car parks
The city has opened 72 public car parks, but this is well below the planned total of 1,620.
15:04, 2024/07/12
NIC and Google launch initiative to accelerate AI adoption in Vietnam
This strategic initiative highlights the tech giant's dedication to assisting Vietnam's digital transformation and is in direct line with the country's National AI Strategy to 2030.
14:49, 2024/07/09
Len Men project celebrates vibrant culinary heritage of Hanoi and northern Vietnam
The project is expected to inspire the next generation of Vietnamese food enthusiasts and establish Vietnamese gastronomy as a global culinary phenomenon.
11:58, 2024/07/09
US support for approval of direct power purchase agreement in Vietnam
The US-support mechanism allows consumers to purchase electricity directly from a generation company rather than through a local power utility, facilitating long-term planning and providing price certainty.
16:49, 2024/07/07
Promising second half 2024 outlook for Vietnamese real estate
Expectations are high following the approval by the National Assembly of the Real Estate Business Law, the Housing Law, and the Land Law, which will soon enter into force.