On March 21, World Bank (WB) announced that Vietnam has received a payment of USD 51.5 million for verified emission reduction (carbon credits) for reducing deforestation and forest degradation (commonly known as REDD+) and for enhancing carbon stored in forests through reforestation and afforestation.

The payment was made to Viet Nam for reducing 10.3 million tons of carbon emissions between February 1, 2018 and December 31, 2019.

Ilustration. (Photo: internet)

World Bank Country Director for Viet Nam Carolyn Turk said that this landmark payment marks another step for Viet Nam towards joining the global carbon credit market and opens a new opportunity to finance the country’s ambitious climate commitments and targets.

According to the WB, Vietnam is 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). It is also the largest single payment to date made by the FCPF for verified and high integrity carbon credits.

The payment will benefit 70,055 forest owners and 1,356 communities near the forest, to be distributed according to a robust benefit sharing plan designed through a consultative, participatory, and transparent process.

Vietnam's efforts to implement REDD+ have brought results much greater than the volume contracted with the FCPF Fund. Specifically, the program generated 16.2 million verified emission reductions between 2018 – 2019, which is 5.9 million more than the 10.3 million contract volume in the Emission Reduction Payment Agreement.

Vietnam can sell the credits to third party buyers through bilateral agreements or carbon markets. The country can also use the excess credits to fulfill its Nationally Determined Contributions or retire them, which is a net climate benefit.

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