WB's 51.5-million-USD payment helping Vietnam reduce emissions

WB's 51.5-million-USD payment helping Vietnam reduce emissions, illustration photo/ Source: freepik.com

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

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

The payment was made to Vietnam for reducing 10.3 million tonnes 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 forests, to be distributed according to a robust benefit sharing plan designed through a consultative, participatory, and transparent process.

Minister of Agriculture and Rural Development Le Minh Hoan said 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 success of this REDD programme brings Vietnam closer to delivering on its ambitious Nationally Determined Contributions under the Paris Agreement, while protecting areas of vital importance to biodiversity conservation, he added.

According to WB Country Director for Vietnam Carolyn Turk, this landmark payment marks another step for Vietnam towards joining the global carbon credit market and opens a new opportunity to finance the Southeast Asian country’s ambitious climate commitments and targets.

Vietnam’s emission reduction programme protects most of the country’s tropical forests, covering 3.1 million out of the 5.1 million hectares of land in the programme area. These forests are of significant ecological importance, encompassing five internationally recognised conservation corridors. The area is also home to 12% of Vietnam’s population, including 13 ethnic minority groups and many forest-dependent communities.

Through improved forest management, investment in the forest sector, and enhancement of agricultural policies, the programme is increasing both the extent and quality of forest cover in collaboration with local communities.

The FCPF is a global partnership of governments, businesses, civil society, and Indigenous Peoples' organisations 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, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling 1.3 billion USD.

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