Hanoi: Vietnam has received a 51.5 million USD payment for verified emissions reductions – commonly referred to as carbon credits – for reducing deforestation and forest degradation (REDD ) and for enhancing carbon stored in forests through reforestation and afforestation, according to the World Bank (WB)’s press release this week.
The payment made to Vietnam, making it the first country in the East Asia Pacific region to receive a results-based payment from the World Bank’s Forest Carbon Partnership Facility (FCPF), was for reducing 10.3 million tonnes of carbon emissions in the period spanning February 1, 2018 and December 31, 2019.
This makes for the biggest single payment to date made by the FCPF for verified and high integrity carbon credits. The benefits of this payment are expected to reach 70,055 forest owners and 1,356 neighbouring communities, allocated according to a robust benefit-sharing plan developed through a consultative, participatory, and transparent process.
“The success of this REDD programme brings Vietnam closer to delivering on our ambitious Nationally Determined Contributions under the Paris Agreement, while protecting areas of vital importance to biodiversity conservation,” Vietnamese Minister of Agriculture and Rural Development Le Minh Hoan said.
The country is already generating emission reductions in excess of the volume contracted with the FCPF, and can sell the credits to third party buyers through bilateral agreements or carbon markets.
“This landmark payment marks another step for Vietnam towards joining the global carbon credit market and opens a new opportunity to finance the country’s ambitious climate commitments and targets,” World Bank Country Director for Vietnam Carolyn Turk said.
