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World Bank for verified emissions reductions (carbon credits) had a mandatory market for carbon credits. The transfer of
said Tran Quang Bao, Director of the Department of Forestry. emission reduction results is carried out through bilateral
Around 80 percent of this sum has been distributed to agreements between relevant parties.
six north central provinces and the remaining 20 percent will Regarding the forest carbon credit market, the Prime

be distributed to the localities. Minister has assigned the agriculture ministry to implement two
Regarding benefit sharing, which refers to how the value agreements to transfer emissions reduction results including
created from the sale of carbon credits is distributed, Bảo said the ERPA in the north central region and another ERPA in
that the Government issued a decree on piloting the transfer the south central and Central Highlands regions.
of emission reduction results and financial management of In the ERPA in the south central and Central Highlands
greenhouse gas emission reduction payment agreements in regions, Vietnam transfers to LEAF/Emergent 5.15 million
the North Central Region. tonnes of CO2 to reduce emissions from forests in the regions
Accordingly, only 0.5 percent will be used to coordinate the in the 2022-2026 period.
general agreements and three percent to perform measurement, LEAF/Emergent will pay for this service at a minimum

control, supervision, training and technical guidance. The price of US$10 per ton of CO2 with a total value of US$51.5
balance is to be allocated to targeted localities. million. The area of commercial and service forests registered
Based on the contracted forest area the localities will to reduce emissions is 4.26 million hectares, including 3.24
allocate funds to people and communities that signed contracts million hectares of natural forests and 1.02 million hectares
to protect and manage the forests. of planted forests.
Presently, the Ministry of Agriculture has issued a benefit-
sharing plan and is organising training on how to distribute Dual benefits for the Vietnamese wood industry from

benefits to localities. The main beneficiaries are communities, creating carbon credits
ethnic minorities and forest keepers. During the period 2010-2020 the average annual net emissions
According to the Forestry Department, the Emission in Vietnam’s forestry is about negative 40 million tonnes of
Reductions Payment Agreement (ERPA) in the North Central CO2 equivalent.
Region was signed on October 22, 2020, between the agriculture If converted into monetary value, reducing 40 million
ministry and the International Bank for Reconstruction and tonnes of CO2 is equivalent to about VND3,500 billion with
Development (IBRD) under the World Bank Group as the the assumption that the cost of reducing emissions of one
Trustee of the Forest Carbon Partnership Facility (FCPF). tonne of CO2 is equivalent to US$5.
The ERPA aims at transferring reduced emissions of 10.3

million tonnes of CO2 in the northern part of the central Alistair Berg
region in 2018-2024 to the FCPF via the World Bank, with
the unit price of US$5 per tonne of CO2, worth US$51.5
million in total.
About 95 percent of the transferred results will be returned
to Vietnam to contribute to the national commitment to
greenhouse gas emissions to obtain the goals of the Paris

Agreement on climate change approved at COP21.
According to the Forestry Department, Vietnam has not