70,555 forest owners and 1,356 forest-dependent communities benefit from the sale of forest carbon credits

According to WB, Vietnam has received $51.5 million for verified emission reduction results (known as "carbon credits") achieved through efforts to curb deforestation and forest degradation (commonly referred to as REDD+) and enhance carbon storage through afforestation and reforestation. Vietnam is the first country in the East Asia Pacific region to receive such remuneration based on emission reduction outcomes from the World Bank's Forest Carbon Partnership Facility (FCPF).

This significant payment reflects Vietnam's remarkable reduction of 10.3 million tons of carbon emissions between February 1, 2018, and December 31, 2019. It stands as the largest single payment ever made by the FCPF for verified emission reduction results of exceptional quality. The benefits of this funding extend to 70,555 forest owners and 1,356 forest-dependent communities, allocated through a comprehensive benefit-sharing plan developed through transparent consultations with various stakeholders.

Minister of Agriculture and Rural Development Le Minh Hoan emphasized how the success of initiatives like REDD+ brings Vietnam closer to achieving its ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement on climate change, while also safeguarding critical areas for biodiversity conservation.

In exceeding its contracted emission reduction targets with the FCPF, Vietnam gains the flexibility to trade surplus emission reductions with third parties through bilateral agreements or carbon markets. Additionally, these surplus emission reductions can be utilized for its NDC or reserved for climate goals.

WB Country Director for Viet Nam Carolyn Turk heralded this payment as a significant milestone for Vietnam's engagement in the global carbon credit market, offering a new avenue to finance the nation's ambitious climate commitments and objectives.

The program's impact is evidenced by its generation of 16.2 million verified emission reduction results for the period 2018-2019, surpassing the contracted amount of 10.3 million tons. Moreover, WB has informed Vietnam of its decision to exercise an option to acquire an additional 1 million emission reduction results beyond the agreed-upon amount.

Vietnam's emission reduction initiatives serve as a bulwark for the nation's tropical forests, covering 3.1 million hectares of the 5.1 million-hectare program area. These forests hold immense ecological significance, hosting five internationally recognized conservation corridors and providing habitat for 12% of Vietnam's population, including 13 ethnic minority groups and numerous forest-dependent communities. Alarmingly, nearly one-third of the population in these areas resides below the country's poverty line. Through enhanced forest management, investments in forestry, and bolstered agricultural policies, the program endeavors to expand both the breadth and quality of forest cover through collaborative efforts with local communities.