"Double joy" for forest planters in Nghe An

Money "falls from the forest"

Mr. Luong Van Thang from Tuc Pang village, Dong Van commune (Que Phong district) shared that his family owns more than 1 hectare of forest land for cultivation and protection. He, like many other households in the village, has received a subsidy of several million dong annually for forest environmental services. Now, the joy is doubled as, on the same area of ​​forest, people are receiving additional support from the cost of reducing greenhouse gas emissions (money from selling forest carbon credits).

On October 6th, Mr. Nguyen Van Sinh, Director of the Pu Hoat Nature Reserve (Que Phong district), announced that the unit had just received a decision from the Provincial People's Committee approving funding to support greenhouse gas emission reduction activities for individuals and organizations within the Pu Hoat Nature Reserve. The total amount eligible for forest owners is 19.5 billion VND. However, the amount that meets the payment requirements for forest owners is 18.5 billion VND (the remaining 1 billion VND is for areas where there is no longer any leased land).

In addition, forest protection participants in the Pu Hoat Nature Reserve will soon receive an annual funding of over 18 billion VND from forest environmental services. Thus, in 2024, forest owners will have "double joy" as they will receive two sources of financial support. According to Mr. Phan Trong Dung, Head of the Agriculture and Rural Development Department, forest owners in Que Phong district will receive a total of approximately 34 billion VND in funding. Currently, individuals and organizations are completing their paperwork to receive the money. Village officials in Que Phong district said they recently received training from the Provincial Forest Protection and Development Fund in coordination with relevant agencies on the procedures for receiving the support payment for reducing greenhouse gas emissions.

Ms. Lang Thi Hoai, head of Tuc Pang village, Dong Van commune, Que Phong district, said that the villages are currently reviewing information on forest area and forest owners to prepare for receiving the funds. Dong Van commune has 6 village communities that are forest owners and are receiving support for greenhouse gas emission reduction, totaling over 2 billion VND. For individual forest owners, the support received in this payment is almost equal to the amount for forest environmental protection services, approximately 500,000 VND per hectare. This is the support for greenhouse gas emission reduction for the years 2023-2024 (approximately 250,000 VND per hectare each year).

“It is expected that people will receive both payments between October and December this year. These include 600,000 VND/hectare for forest environmental services and 500,000 VND/hectare for carbon credit sales. In Muong Hinh, some households with 10 or 15 hectares of forest are expected to receive 10-15 million VND per household from both payments by the end of this year, and everyone is very excited,” said Ms. Luong Thi Tien, Head of Muong Hinh village.

According to officials in Dong Van commune, in addition to the annual forest environmental service fees received by communities and individuals, villages now have an extra 2 billion VND to invest in social activities and livelihood development at the grassroots level. “We jokingly say this is money falling from the forest. But in reality, we understand that receiving this support makes each person even more responsible for protecting the forest, the environment, and combating climate change. The proceeds from selling carbon credits are only received when the forest is well protected,” said Mr. Luong Van Thuong, Deputy Secretary of the Party Committee of Dong Van commune.

Similarly, in 2024, the Con Cuong district was approved by the Provincial People's Committee for 5,772 beneficiaries, including households, individuals, and communities, to receive funding from greenhouse gas emission reduction activities. These beneficiaries manage over 28,500 hectares of forest. Each hectare is expected to receive approximately 500,000 VND/hectare at the end of 2024 for individual and household forest owners.

For communities, the amount will not exceed 50 million VND per organization/community. In addition, the People's Committees of the communes in Con Cuong district, which manage over 10,000 hectares of forest, will also benefit from funding from the sale of carbon credits. Forest owners within Pu Mat National Park are expected to receive approximately 24 billion VND from the greenhouse gas emission reduction support fund. The entire Con Cuong district is expected to receive approximately 50 billion VND from this source.

Develop a plan for using the financial assistance.

According to village-level officials in various localities, after being guided on how to complete the dossiers, the review process for individual and household forest owners has been largely completed. For dossiers of collective or community forest owners, attention should be paid to the "seven steps" for completion.

Most importantly, it is necessary to develop a plan for using the support funds to implement models, manage, protect, and develop forests, and improve local livelihoods corresponding to the allocated funds. According to ERPA regulations, when receiving payments, the local community must collectively agree on a system for sharing and using these funds in accordance with the purposes outlined in the plan.

Mr. Nguyen Danh Hung, Deputy Director of the Department of Agriculture and Rural Development, said that the list of eligible entities meeting the requirements of the Emission Reduction Payment Agreement (ERPA) for the North Central region in 2024 has been finalized. The approved list includes three groups of beneficiaries who will receive revenue from the ERPA in 2024.

Currently, the Forest Protection and Development Fund is conducting training and guidance for localities to complete the necessary documents in preparation for payments at the end of 2024. Particular attention is being paid to community and collective forest owners, who need to provide detailed plans for the use of the allocated funds. Nghe An province is expected to receive over 280 billion VND in support.

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On September 24, 2024, the People's Committee of Nghe An province issued Decision No. 32/2024/QD-UBND regulating the forest protection contract rate; the number of payments, and the payment schedule for funds from the agreed-upon payment for greenhouse gas emission reduction in the North Central region for beneficiaries in Nghe An province. Specifically, the People's Committee of Nghe An province stipulated the forest protection contract rate from the agreed-upon payment for greenhouse gas emission reduction in the North Central region at 500,000 VND/ha/year. The payment frequency is 1 payment per year for each forest owner, commune-level People's Committee, and other organizations entrusted by the State with forest management responsibilities. The payment schedule is as follows: For forest owners who are households, individuals, or community groups: After the commune-level People's Committee publicly posts the payment list at its headquarters for 7 days without any questions or complaints. For forest owners that are organizations, the People's Committee at the commune level, and other organizations entrusted by the State with the responsibility of managing forests, payment will be made after the annual financial plan has been approved by the competent authority.