On October 22, 2020, the World Bank’s Forest Carbon Partnership Facility (FCPF) signed an agreement with Vietnam to provide up to US$51.5 million for the country’s efforts in reducing forest degradation and carbon emissions from deforestation over the next five years.
The FCPF is a global partnership of governments, civil society, businesses, and Indigenous Peoples’ organizations dedicated to reducing emissions linked to deforestation and forest degradation, the sustainable management of forests, forest carbon stock conservation, and forest carbon enhancement stocks in developing countries.
Vietnam’s World Bank Country Director, Carolyn Turk, said:
Vietnam has shown tremendous leadership in developing robust programs to deliver forest emission reductions at scale. This agreement marks the beginning of a new chapter for Vietnam, where new and significant incentives for forest protection and improved management are now in place to help the country meet its ambitious climate targets.
The agreement, called the Emission Reductions Payment Agreement (ERPA), is expected to reduce 10.3 million tons of CO2 emissions. To receive the money, Vietnam will have to reduce emissions from six North Central Region provinces: Ha Tinh, Nghe An, Quang Binh, Quang Tri, Thanh Hoa, and Thua Thien Hue.
Vietnam has an Emission Reductions Program (ERP) in place that is designed to combat the root causes of forest loss in that region, consequently reducing emissions from forest degradation and deforestation. The ERP also supports forest restoration.
Vice Minister of Agriculture & Rural Development, Ha Cong Tuan, said:
Vietnam’s program follows a preparation phase that built our readiness to engage in an emission reduction payment agreement of this kind and is a step towards full implementation of forest carbon services in Vietnam. This agreement highlights the collaboration between Vietnam, FCPF, and the World Bank to meet international climate targets in the Paris Agreement. Our program will mobilize important additional financing to invest in our forests and reduce forest degradation while generating income for forest owners and improving sustainable development in the North Central Region.
The region was selected for its socio-economic status and critical biodiversity importance. It covers 5.1 million hectares, which is 16% of the country’s land area. 3.1 million hectares of it are forested, including five internationally recognized conservation corridors. About 10.5 million people call the region home, one-third of whom live below the national poverty line.
Vietnam is one of many countries to receive support from the FCPF, but the first in Asia-Pacific. Other countries that signed a similar deal include Ghana, Mozambique, and the Democratic Republic of Congo. Ghana currently holds one of the highest deforestation rates in Africa.
World Bank’s VP for Sustainable Development, Laura Tuck, said:
Avoiding deforestation and restoring our forests are essential to a safer, climate-resilient, and more prosperous future for communities around the world. These payment agreements are game-changers as they provide financial incentives for communities to manage their forests sustainably,
Vietnam can reduce its greenhouse gas emissions by 2030 by 8% on its own, or 25% with international assistance. The aid from FCPF facilitates new opportunities to regenerate forests, conserve, and reduce emissions. Furthermore, it supports sustainable economic growth – fighting climate change while lifting people out of poverty.
