Vietnam to receive US$5 million more from carbon credit transfer
This will ensure the timely distribution of Emission Reductions Payment Agreement (ERPA) funds for local areas.
THE HANOI TIMES — Vietnam will receive an additional US$5 million over the next two months from the transfer of 1 million tons of CO2 to the World Bank (WB), under the government's recent resolution on the transfer of excess greenhouse gas emission reductions.
Le Van Thanh, Deputy Director of the Vietnam Forest Protection and Development Fund, said that once the funding is received, the Ministry of Agriculture and Environment will approve the overall financial plan for the amount.
Regarding the revenue from the pilot transfer of emission reduction results and the financial management of the ERPA in the central region, the fund has already received a total of $51.5 million from the WB for carbon exchange.
Vietnam and the WB signed an agreement in October 2020 to transfer 10.3 million tons of CO2, representing greenhouse gas emission reductions from over 2.15 million hectares of natural forests in the country’s central region between 2018 and 2024.
With a price of $5 per ton of CO2, the transfer generated $51.5 million. About 95% of the transfer result will be returned to Vietnam to support its nationally determined contributions to cut emissions. Foolowing this, the WB agreed to purchase an additional 1 million tons of CO2 as excess greenhouse gas emission reductions.
