Vietnam earns 51.5 million USD from first forest carbon credit sale

 Vietnam successfully sells 10.3 million forest carbon credits (10.3 million tonnes of CO2) in 2023. (Photo:vneconomy.vn)

Hanoi (VNA) - 2023 marked a significant milestone for the forestry sector as Vietnam successfully sold 10.3 million forest carbon credits (10.3 million tonnes of CO2) for the first time through the World Bank (WB) for 51.5 million USD, said Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri.

The sale was part of the Emission Reductions Payment Agreements (ERPA) in the north central region signed on October 22, 2020 between the International Bank for Reconstruction and Development (IBRD) of the WB and the Ministry of Agriculture and Rural Development (MARD).

In early August 2023, the WB paid the first ERPA instalment of 41.2 million USD to the Vietnamese ministry, or 80% of the contract.

The remaining 10.3 million USD will be paid after the transfer of 10.3 million tonnes of CO2 is completed.

The Vietnam Forest Protection and Development Fund has received and disbursed all the first payment so that six north central provinces can urgently make payment plans for forest owners.

Illustrative image (Source: vtv.vn)

In addition to the number of credits sold, the WB has confirmed the emission reduction results of the entire north central region in the first period (January 1, 2018 - December 31, 2019), reaching 16.21 million tonnes of CO2 (equivalent to 16.21 million credits).

Deputy Minister Tri also said that 2023 was a struggling year for the forestry industry, including supply and demand chain disruptions affecting trade, logistics problems, and climate change.

However, he acknowledged the sector's efforts to overcome difficulties in the past year to achieve remarkable results.

In 2024, he suggested that the forestry industry promptly issue appropriate policies and mechanisms to facitiate its development.

According to the Vietnam Administration of Forestry, the country planted about 250,000 hectares of forest last year, surpassing the yearly plan by 2%. The forest coverage rate was 42.02%, matching the target. Total revenue from all forest environment services reached more than 4.1 trillion VND (169 million USD)./.