Vietnam has achieved a significant milestone as the first country in the East Asia Pacific region to receive a results-based payment of US$51.5 million from the World Bank for verified emissions reductions, as announced in a press release on Thursday.
This payment reflects Vietnam’s success in reducing 10.3 million metric tons of carbon emissions between February 1, 2018, and December 31, 2019. It is a testament to the country’s commitment to combat deforestation and forest degradation, known as REDD+, and to enhance carbon storage in forests through reforestation and afforestation efforts.
Notably, this payment represents the largest single payment to date made by the bank’s Forest Carbon Partnership Facility (FCPF) for verified and high-integrity carbon credits. It will directly benefit 70,055 forest owners and 1,356 communities residing near the forests, distributed according to a well-designed benefit-sharing plan established through a consultative, participatory, and transparent process.
“The success of this REDD+ program brings Vietnam closer to delivering on our ambitious Nationally Determined Contributions under the Paris Agreement, while safeguarding areas crucial for biodiversity conservation,” remarked Le Minh Hoan, Vietnamese Minister of Agriculture and Rural Development.
Additionally, Vietnam has exceeded the volume of emission reductions contracted with the FCPF and can now market the excess credits to third-party buyers through bilateral agreements or carbon markets. This flexibility allows the country to leverage the surplus credits to fulfill its Nationally Determined Contributions or retire them, contributing to a net climate benefit.
The FCPF, established as a global partnership, focuses on reducing emissions from deforestation and forest degradation, conserving forest carbon stocks, sustainably managing forests, and enhancing forest carbon stocks in developing countries, activities commonly known as REDD+.
Since its inception in 2008, the FCPF has collaborated with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, supported by 17 donors who have contributed and committed a total of $1.3 billion.
