The transactions were conducted through the World Bank’s Forest Carbon Partnership Facility, at a price of US$5 per tonne of CO₂.

The Vietnam Forest Protection and Development Fund has so far received US$41.2 million from the World Bank in the first phase and has fully disbursed the amount to six north-central provinces to pay forest owners.

Of those provinces, Nghe An has received 23% of the total amount, Quang Binh 20%, Thanh Hoa 13.5%, and Ha Tinh 10%.

Pham Hong Luong, an official of the Department of Forestry, said that the World Bank has highly appreciated Vietnam’s transfer of carbon credits, considering this a success story that can be replicated worldwide.

Vietnam is one of the countries with rich forest potential. That country has more than 14.7 million hectares of forests, with a coverage rate of more than 42%.

In February 2020, the Ministry of Agriculture and Rural Development and the World Bank signed a document on the reduction of emissions in the north-central region for the 2018 – 2024 period.

The north-central region, comprising Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces, has more than 3.1 million hectares of forested land with forest coverage reaching 57.4%.

Source: VOV