According to Mr. Tran Quang Bao, 80% of the above amount has been allocated to the 6 participating provinces of North Central Vietnam and after 1-2 months, the entire amount will be allocated to the localities.
Sharing the benefits from the above source of money, Mr. Tran Quang Bao said that the Government has issued Decree No. 107/2022/ND-CP on piloting the transfer of emission reduction results and financial management of greenhouse gas emission reduction payment agreements in the North Central region.
Accordingly, it is clearly stipulated that only 0.5% will be used for general agreement coordination and 3% for measuring, controlling, monitoring, training, technical guidance, etc. The remaining 96.5% will be allocated to localities.
Based on the area of forest contracted, the locality will continue to allocate the above amount to the people and communities contracted to protect the forest. Currently, the Ministry of Agriculture and Rural Development has issued a benefit sharing plan and is organizing training to allocate to localities that benefit from this revenue source. The main beneficiaries are communities, ethnic minorities, forest rangers, etc.
Mr. Tran Quang Bao, Director of the Forestry Department, shared information at the press conference. Photo: Bich Hong/bnews.vn/TTXVN
According to the Department of Forestry, the North Central Region Greenhouse Gas Emission Reduction Payment Agreement (ERPA) was signed on October 22, 2020 between the Ministry of Agriculture and Rural Development and the World Bank as the Trustee of the Forest Carbon Partnership Facility (FCPF) to transfer 10.3 million tons of GPT carbon dioxide (CO2) in the North Central region during the period of 2018-2024, at a unit price of 5 USD/ton of CO2 equivalent to 51.5 million USD. About 95% of the transfer results will be transferred back to Vietnam to contribute to the national commitment on greenhouse gas emission reduction (NDC).
However, according to the Emission Reduction Results Report, Phase 1 (2018-2019 period) confirmed by the WB, the emission reduction results in the North Central region reached 16.21 million tons of CO2.
For the remaining 5.91 million tons of CO2, the WB has agreed to purchase an additional 1 million tons of CO2. For the remaining 4.91 million tons of credits, the Ministry of Agriculture and Rural Development has reported to the Prime Minister for consideration and decision. At the same time, continue to coordinate with the WB to measure and confirm the amount of credits in phase 2 (2020-2022). Phase 3 (2023-2024), seek partners who are interested in receiving to negotiate the transfer, ensure national interests and mobilize additional resources for forest protection and development in the North Central region.
The Forestry Department also said: Currently, Vietnam does not have a mandatory market for carbon credits. The transfer of emission reduction results is carried out through bilateral negotiation agreements between relevant parties according to the voluntary market. For the forest carbon credit market, the Ministry of Agriculture and Rural Development is currently assigned by the Prime Minister to implement two agreements on the transfer of emission reduction results. These are the above ERPA for the North Central region and the ERPA for the South Central region and the Central Highlands.
For the ERPA in the South Central and Central Highlands regions, Vietnam will transfer to LEAF/Emergent 5.15 million tons of CO2 to reduce emissions from forests in the South Central and Central Highlands regions during the period 2022-2026.
LEAF/Emergent will pay for this service at a minimum price of USD 10/1 ton CO2 for a total value of USD 51.5 million. The area of forest registered for commercial emission reduction services is 4.26 million hectares; of which, natural forest is 3.24 million hectares and planted forest is 1.02 million hectares.
The Ministry of Agriculture and Rural Development has completed the application for registration to issue credits according to TREES standards. At the same time, it is urgently organizing technical negotiations with Emergent to complete the negotiation plan and report to the Prime Minister for consideration and decision.
According to VNA/Tin Tuc Newspaper
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