The Government of Vietnam has recently issued a Resolution allowing the transfer of one million tons of reduced CO₂ from plantation forests in the North Central region to the International Bank for Reconstruction and Development, a member of the World Bank Group, under the Emission Reductions Payment Agreement (ERPA).
This amount is part of 5.9 million tons of surplus CO₂ after Vietnam transferred emission reduction results from Phase 1, generating USD 51.5 million.
At a meeting on the morning of September 15, Mr. Le Van Thanh, Deputy Director of the Vietnam Forest Protection and Development Fund, said that in 2025, the World Bank is expected to transfer about USD 5 million (around VND 131 billion) from this additional transfer. Of this, more than VND 126 billion will be allocated to the 5 North Central provinces.
Vietnam continues to have the revenue from the pilot transfer of emission reduction results in the North Central Region. Photo: VNA/VNS.The new funding will continue to be used to ensure environmental and social safety, similar to the disbursement of USD 51.5 million since 2023. This includes: forest protection contracts, community livelihood support, construction and implementation of silvicultural works and measures, awareness campaigns, and training activities.
This serves both as motivation and encouragement for those working in forest protection and development, while also posing challenges to ensure the funds are used transparently and effectively.
According to Mr. Thanh, after three years of ERPA implementation, five North Central provinces have approved financial plans. Most of the funds have been transferred to forest owners. However, there remain issues to be resolved. For example, Quang Binh Province merged into Quang Tri, complicating the determination of forest area and beneficiaries.
For organizational forest owners, they need additional approval from management boards and updated forest status information before distributing funds to the final beneficiaries, namely individuals contracted for forest protection.
Based on the North Central Region Emission Reductions Program Document included in the results-based payment list by the Forest Carbon Partnership Facility (FCPF) and already approved, the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) and the International Bank for Reconstruction and Development (IBRD) (part of the World Bank Group) signed the Emission Reductions Payment Agreement (ERPA).
The ERPA transfers 10.3 million tons of CO₂ equivalent (CO₂e) emission reductions from the North Central Region during 2018 - 2024 to the FCPF, for a total value of USD 51.5 million.