Sharing the benefits of greenhouse gas emission reduction payments

To implement the payment of revenue from the North Central Region Greenhouse Gas Emission Reduction Payment Agreement (ERPA), recently, departments, branches, localities and related units in Ha Tinh have implemented steps according to regulations.

Timely payment under ERPA

Ha Tinh is one of six provinces in the North Central region implementing Decree No. 107/2022/ND-CP dated December 28, 2022 on piloting the transfer of emission reduction results and financial management of greenhouse gas emission reduction payment agreements in the North Central region. Ha Tinh was allocated a first phase of VND 122.8 billion, of which VND 43 billion in 2023 will be paid to forest owners and beneficiaries.

The funding source of the Agreement on payment for greenhouse gas emission reduction in the North Central region will help to care for and protect many forests in Ha Tinh.

Mr. Pham Thai Binh - Director of the Ha Tinh Provincial Development Investment Fund said that in order to promptly pay revenue from EFPA, the People's Committee of Ha Tinh province has issued a document assigning relevant departments, branches, localities and units to implement in accordance with the provisions of law and instructions of the Central agency; ensuring timeliness, right subjects, publicity and transparency.

Up to now, the Provincial Forest Protection and Development Fund is coordinating with relevant departments and units to advise the Provincial People's Committee to approve the master plan and financial plan for 2023 from ERPA sources as a basis for payment to forest owners and beneficiaries through bank accounts in accordance with the law.

Principle of transfer of emission reduction results

The transfer of emission reduction results is the transfer of ownership of greenhouse gas emission reductions from natural forests by the Ministry of Agriculture and Rural Development to the Forest Carbon Partnership Fund entrusted by the International Bank for Reconstruction and Development under ERPA (including the signed emission reduction of 10.3 million tons _{of CO2} and the maximum additional emission reduction of 5 million tons _{of CO2} (if any)).

Sharing the benefits of greenhouse gas emission reduction payments

According to Clause 29, Article 3 of the Law on Environmental Protection 2020, greenhouse gases are gases in the atmosphere that cause the greenhouse effect.

In principle, the transfer of emission reduction results is determined according to the agreement in the ERPA. Emission reduction results that have been transferred under the ERPA cannot be transferred to other partners.

Revenue from ERPA is revenue from forest environmental services for forest carbon sequestration and storage services, greenhouse gas emission reduction from limiting net forest loss and degradation, sustainable forest management, green growth according to the provisions of the Forestry Law, paid according to the provisions of Decree No. 107/2022/ND-CP of the Government.

The transfer period of greenhouse gas emission reduction results generated by forest management and protection activities from 2018 to 2024, with the transfer to be implemented until December 31, 2025.

The level of support for livelihood development is 50 million VND/community/year.

Regarding expenditure norms, the Decree stipulates that for forest protection contracts, the minimum contract level is equal to the state budget support level for forest protection contracts, and the maximum is not greater than twice the state budget support level for forest protection contracts according to the contract recipient in the same provincial area. The specific level is determined by the provincial People's Committee.

For livelihood development support activities, the support level is 50,000,000 VND/community/year.

Tax obligations arising from the transfer of emission reduction results as prescribed in this Decree shall be implemented in accordance with relevant tax laws.

Beneficiaries of ERPA include:

- Forest owners as prescribed in Article 8 of the Forestry Law are assigned to manage natural forests.

- Commune-level People's Committees and other organizations assigned by the State to manage natural forests according to the provisions of law.

- The community and the People's Committee at the commune level have an Agreement to participate in forest management activities with the forest owner, which is an organization.

- Vietnam Forest Protection and Development Fund and Forest Protection and Development Fund of 06 provinces in the North Central region.

- Other entities with activities related to reducing emissions and absorbing greenhouse gases from forests in 06 provinces of the North Central region.

Ba Tan

Source