In the report to the Prime Minister on the implementation of the Emission Reductions Payment Agreement (ERPA) in the north central region, MARD said ERPA was signed on October 20, 2020 between the agency and IBRD (International Bank for Reconstruction and Development), belonging to the World Bank group as the Trustee of the Forest Carbon Partnership Facility (FCPF).

ERPA aims at transferring reduced emissions of 10.3 million tons of CO2 in the northern part of the central region in 2018-2024 to FCPF (The Forest Carbon Partnership Facility) via the World Bank, with the unit price of $5 per ton of CO2, worth $51.5 million in total.

About 95 percent of the transferred results will be returned to Vietnam to contribute to the national commitment on greenhouse gas emissions in order to obtain the goals of the Paris Agreement on climate change approved at COP21.

The World Bank has the right to buy up to 5 million tons of CO2 more from the Report on Emission Reduction Results for the North Central Region in 2018-2024 at a unit price of $5 per ton of CO2 according to the signed ERPA mechanism. GPT results are determined generally for the entire North Central region.

The time for calculating emission reduction results is from January 1, 2018 to December 31, 2024. The World Bank will make payment based on the results of three reporting periods from MARD.

On December 11, MARD signed the documents on transferring 10.3 million tons of CO2 to the World Bank.

The Vietnam Forest Protection and Development Fund is the agency responsible for receiving, managing and using ERPA’s money and coordinating local forest protection funds of six provinces in the north central region including Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien - Hue.

The money will be paid to forest owners, commune people’s committees and organizations tasked with controlling natural forests, and to other subjects related to greenhouse gas emissions.

According to MARD, the World Bank has confirmed emission reductions of 16.21 million tons of CO2 (16.21 million carbon credits) in the north central region in the first period (from January 1, 2018 to December 31, 2019), including the 10.3 million tons of CO2 transferred under ERPA.

The World Bank wants to buy one million tons more of the remaining 5.91 million tons. 

MARD has asked for permission to continue to compile a report on emission reduction results for the second phase.

Tam An