Vietnam to sign emissions reduction purchase agreement hinh anh 1Illustrative image (Photo: VNA)

Hanoi (VNA) - 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 Standing Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

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 coordinate and negotiate directly with the country to prepare for the signing of the agreement.

Under the terms, if Vietnam fully implements its commitment under which the country’s north central localities namely Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hue, will reduce CO2 emissions by 10.3 million tonnes, the FCPF will pay Vietnam 51.5 million USD.

Signing the agreement demonstrates Vietnam’s determination to reduce deforestation and forest degradation.

It also means that the country can implement a mechanism to calculate reductions in greenhouse gas emissions, contributing to its efforts to improve forest protection and management, and at the same time, secure a new financial source for the work.

Tuan 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 has been highly regarded by the international community in recent times for its determination to increase its forest coverage. The country 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.

Vietnam is a member of the UN Framework Convention on Climate Change and has pledged to cut greenhouse gas emissions by 8 percent by 2030. If it receives effective cooperation from other countries and international support, it could cut up to 25 percent 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 that 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./.