The Ministry of Agriculture and Rural Development has allocated 80% of the US$51.1 million earned from selling carbon credits to six provinces in north-central Vietnam.
Vietnam has over 14.7 million hectares of forest with a coverage rate of 42% - Photo: H.P
During a press conference held on April 1 by the Ministry of Agriculture and Rural Development, the Forestry Department announced the completion of the transfer of 10.3 million tons of carbon dioxide (CO2) in the north-central region from 2018 to 2024 to the World Bank. Vietnam received full payment of US$51.5 million for the transfer.
According to the ministry, 80% of the funds have been allocated to six participating provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien Hue. The remaining funds will be distributed to other localities in one or two months.
Based on allocated forest areas, localities will continue to distribute funds to residents and communities responsible for forest protection.
The Greenhouse Gas Emission Reduction Payment Agreement (ERPA) was signed on October 22, 2020 between the Ministry of Agriculture and Rural Development and the World Bank as the trustee of the Forest Carbon Partnership Facility (FCPF).
Under this agreement, Vietnam will sell 10.3 million tons of carbon dioxide in the north-central region from 2018 to 2024 at a unit price of US$5 per ton, equivalent to US$51.5 million.