Vietnam to sign emissions reduction purchase agreement
Vietnam will be the fifth partner in the Forest Carbon Partnership Facility (FCPF) and the first in the Asia-Pacific region to sign an Emissions Reduction Purchase Agreement (ERPA), according to Deputy Minister of Agriculture and Rural Development Hà Công Tuấn.
As part of efforts to implement the 2015 Paris Agreement on climate change, Vietnam negotiated with the FCPF, which entrusted the World Bank (WB) to co-ordinate and negotiate with the country to prepare for the signing of the agreement.
Under the terms, if Vietnam fully implements its commitment for north-central localities Thanh Hoá, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị and Thừa Thiên-Huế to reduce CO2 emissions by 10.3 million tonnes, the FCPF will pay Vietnam US$51.5 million.
Signing the agreement is part of Vietnam’s efforts to reduce deforestation and forest degradation.
It also means the country can implement a mechanism to calculate reductions in greenhouse gas emissions, contributing to its efforts to improving forest protection and management, and at the same time, secure a new financial resource for the work.
Tuấn said that after signing the ERPA, the Ministry of Agriculture and Rural Development will have to issue a detailed plan to implement the agreement.
He underlined the importance of reducing forest degradation and increasing the area and quality of forests.
Vietnam is working to restore and improve the volume, quality, and biodiversity of natural forests, as well as applying new technologies to increase productivity and the quality of planted forests, towards enhancing the capacity to absorb carbon.
The country is a member of the UN Framework Convention on Climate Change and has pledged to cut greenhouse gas emissions by 8 per cent by 2030. If it receives effective co-operation from other countries and international support, it could cut up to 25 per cent of emissions.
In this initiative, Vietnam has worked closely with the FCPF and many other organisations to reduce greenhouse gas emissions and has 10 years to prepare for a carbon credit mechanism.
In 2018, the FCPF recognised Vietnam had basically completed the preparatory phase to reduce greenhouse gas emissions in line with the ‘Reducing Emissions from Deforestation and Forest Degradation’ (REDD+) international framework.
The Ministry of Agriculture and Rural Development signed a letter of intent with the FCPF and moved to a new phase of results-based payments towards a full carbon credit market.
REDD+ is an international initiative aimed at providing financial and technical assistance for developing countries, to help reduce greenhouse gas emissions and mitigate the impact of climate change via efforts against deforestation and forest degradation.
Vietnam has participated in REDD+ since 2008 and more than 45 related projects have been implemented in the country to date.
Vietnam News – October 22, 2020