Who benefits from the North Central Region Emission Reduction Project?

The North Central Region Emission Reduction and Transfer Project is built with the goal of achieving an emission reduction result (including greenhouse gas emission reduction and carbon absorption) of 19.5 million tons of carbon dioxide equivalent (denoted as tCO2) in the implementation period (2019-2024), of which 10.3 million tCO2 may receive carbon benefits from results-based payments from the FCPF Carbon Fund.

The Benefit Sharing Plan (BSP) aims to share carbon benefits from results-based payments only. The BSP is designed to ensure that carbon benefits reach different beneficiaries at all levels in a fair and transparent manner through a consultation process with all parties.

Ecotourism on Giang River (Con Cuong). Photo: Van Truong

For local communities, the main beneficiaries include: Forest-dependent communities, poor households are the most important forest users and are often affected by poverty. Management boards of protective and special-use forests, forestry companies are managing protective forests, special-use forests and natural forests which are production forests. Enterprises, cooperatives, and public service units participate as service providers or develop and implement proposed projects. Forest Management Councils (FMC), Adaptive Collaborative Management (ACM) and related parties support monitoring and evaluation, support in resolving questions, complaints, mediation and feedback (FGRM). People's Committees at all levels, State management agencies of agriculture and rural development, natural resources and environment, justice, etc.

The BSP will also help encourage active participation of all stakeholders at all levels to contribute to the ultimate goal of emission reduction.

The BSP is designed to be linked to ongoing initiatives, will use existing organizational and institutional systems, and support capacity building. The BSP is linked to existing roles and functions of stakeholders and sets out the conditions for participation and benefits.

Benefit sharing is important for creating the necessary incentives to change deforestation and forest degradation behaviour, thereby reducing carbon emissions. However, if stakeholders do not perceive the system as equitable, it can threaten their decision-making autonomy and support for REDD+. A well-designed benefit sharing mechanism can help improve forest management and increase the effectiveness of the Emission Reduction Programme.

Pu Mat National Park has a very diverse ecosystem. Photo: Van Truong

With the aim of developing a suitable Benefit Sharing Plan (BSP) for the Emission Reduction Project, ensuring that this mechanism is designed and has broad consensus among stakeholders at the national and local levels, including the community level, and ensuring that carbon benefits are shared fairly and effectively, the FCPF2 Project Management Board of Nghe An province plans to organize a workshop to consult stakeholders on the benefit sharing mechanism within the framework of the Emission Reduction Project (expected to be held in December), with the following contents: Fairness, publicity and transparency of benefit sharing: Only those who contribute (directly and indirectly) to the GPT target are beneficiaries. The regulations must be clear, the method of allocating funds and calculating the benefit level must be public and verifiable; the information must be public, listed and disseminated.

The level of benefits must be based on the final results (measured, verified and reported according to regulations). The implementation results are monitored and evaluated at all levels through a system of specific result indicators (including forest/forest land indicators and safety indicators); ensuring gender equality and equality among participants, paying attention and having mechanisms to encourage the participation of vulnerable groups, and linking FGRM.

Western mountains and forests in Tuong Duong. Photo: Van Truong

The purpose of construction is also to ensure efficiency: Ensure the integration of funding sources, encourage the form of benefiting in the form of reinvestment to increase income and long-term benefits of beneficiaries and contribute to the purpose of protecting and developing sustainable forests. Use the current financial institution if appropriate, do not create many layers in the administrative system to avoid waste and corruption, ensure the institution operates effectively, and save maximum transaction costs. Efficiency, procedures and regulations must be clear, simple, feasible and easy to implement. Ensure quick, timely disbursement, right work and right people, meet work progress, ensure seasonality.

It can be said that benefit sharing is important for creating the necessary incentives to change behaviors that cause deforestation or forest degradation, thereby reducing carbon emissions.

However, if stakeholders do not perceive the system as equitable, it threatens their decision-making autonomy and their support for REDD+. A well-designed benefit-sharing mechanism can also help improve forest management and increase the effectiveness of REDD+ programs.