26 forest owners in Nghe An received more than 115 billion VND from carbon credits

In the roadmap for implementing the payment of greenhouse gas emission reduction support funds (ERPA) for Vietnam in the period 2018 - 2025, in Nghe An province, there are currently 26 forest owners who are communities and collectives receiving more than 115 billion VND.

Specifically, according to the Nghe An Forest Protection and Development Fund, in the province there are 332 residential communities that are forest owners and 457 communities that have agreements to participate in forest management with forest owners that are organizations that benefit from ERPA resources.

By January 2025, the amount of ERPA paid to 26 forest owners who are organizations in the province is 115.8 billion VND out of the total plan of more than 133.8 billion VND, reaching 87% of the total budget of the group of forest owners who are organizations; accounting for 67% of the total budget paid to beneficiaries in the whole province.

For example, according to Mr. Le Anh Tuan - Director of Pu Mat National Park, the communities are forest owners under the management of Pu Mat National Park. By February 2025, the total funding supported from ERPA in 2024 is more than 24 billion VND. The total amount paid is 13 billion VND.

The funding from ERPA that Nghe An has received from forest protection activities and greenhouse gas emission reduction has contributed additional financial resources for forest owners to carry out forest management and protection, support livelihoods associated with forest protection and development for the community; stabilize income, improve the lives of people in the beneficiary area so that they can work with peace of mind and stick with the forestry profession.

Mr. Nguyen Danh Hung - Deputy Director of the Department of Agriculture and Rural Development said that, along with the drastic and synchronous solutions of the Government, the Provincial People's Committee and relevant parties, the implementation of ERPA has had a very positive impact on forest management, protection and development.

This funding source will be a resource to support the work of protecting and developing forests, improving livelihoods, increasing income and living standards of forest workers. Because the funding source mainly supports communities in areas with a large number of ethnic minorities, supporting the construction of essential works for the community. Therefore, the effectiveness of the policy is very obvious.

At the same time, the support also helps to enhance the role and close coordination between people and forest owners as organizations in forest protection work.

The North Central Region Emission Reduction Payment Agreement (ERPA) is a carbon transfer agreement signed on October 20, 2020 between the Ministry of Agriculture and Rural Development and the International Bank for Reconstruction and Development (IBRD), the trustee of the Forest Carbon Partnership Facility (FCPF). According to the Agreement, Vietnam will transfer 10.3 million tons of CO2, and an additional maximum of 5 million tons of CO2 (if any) in 6 North Central provinces to FCPF during the period 2018 - 2025 with a total amount of 51.5 million USD. In return, IBRD will transfer to the Ministry of Agriculture and Rural Development about 95% of the signed emission reductions and the additional amount (if any) to be used for Vietnam's Nationally Determined Contribution (NDC).

On December 28, 2022, the Government issued Decree 107/ND-CP on piloting the transfer of emission reduction results and financial management of the ERPA Agreement. On April 22, 2022, the People's Committee of Nghe An province issued Plan No. 124/KH-UBND to implement the Agreement on payment for greenhouse gas emission reduction in the North Central region in the province.

This is an important policy that regulates how organizations, individuals, households and communities benefit from greenhouse gas emission reduction services from forests.