In the end of March, 2024, the World Bank (WB) transferred an amount of US$51.5 million, equivalent to 1,200 billion VND, to Vietnam after purchasing 10.3 million forest carbon credits. Vietnam is the first country in the East Asia – Pacific region to receive such payments from WB for forest carbon credits.
Ms. Carolyn Turk, WB Country Director for Vietnam, told Tuoi Tre that this payment is a milestone, marking a step forward in Vietnam’s participation in global carbon credit market.
And Quang Binh is one of the first provinces to receive payments from the sale of carbon credits.
Forest carbon credit is one of many types of carbon credit being traded.
According to Quang Binh Provincial Department of Agriculture and Rural Development, over VND 80 billion that the province received from selling carbon credits had been divided and delivered to forest owners. Over 1,000 households who were allocated with forests have received this payment.
Speaking to reporters on the sideline of the Carbon Credit Market workshop – Motivation for building a Green Vietnam organized by Tuoi Tre Newspaper last weekend, Director of Quang Binh Provincial Department of Agriculture and Rural Development, Mr. Tran Quoc Tuan, said that the dividing of money from selling forest carbon credits was implemented following Decree No. 107/2022 of the Government.
Quang Binh is one of the 6 provinces being chosen to participate in the pilot program on transferring emission reduction results and managing financial payment for emission reduction in the North Central Coast region.
Phong Nha – Ke Bang National Park receives over VND 20 billion from selling carbon credits
According to the leader of Quang Binh Agriculture Department, over 10,760 forest owners, which include households, individuals, and community residents, have received payments from the sale of forest carbon credits this time. Furthermore, 71 commune People’s Committees and 25 organizations which are forest owners are also on the receiving end.
“The provincial Forest Protection and Development Fund has paid over VND 72 billion, 88% of the plan, to the beneficiaries. The remaining funds will be included in the 2024 financial plan in order to continue to pay according to regulation”, said Mr. Tran Quoc Tuan.
Among the beneficiaries, Phong Nha – Ke Bang National Park is the forest owner receiving the largest payment, over VND 20 billion.
Phong Nha – Ke Bang National Park is the forest owner receiving the largest payment from the forest carbon credit payment this time.
Phong Nha – Ke Bang National Park is located within the Tan Trach, Thuong Trach, Phuc Trach, Xuan Trach communes, and Phong Nha town, Bo Trach district, Quang Binh province. Phong Nha – Ke Bang National Park covers an area of 123,326 hectares, including 3 sub-zones: strict protection zone (100,296 hectares), ecological restoration zone (19,619 hectares), and administrative service zone (3,411 hectares).
In 2003, UNESCO recognized Phong Nha – Ke Bang National Park as a World Natural Heritage according to the geological and geomorphological criteria, and on July 3, 2015, the park was recognized by UNESCO for the second time as a World Natural Heritage under the biodiversity criteria.
Quang Binh covers a natural area of 8,065.27 km2, 85% of which is mountainous area within the North Truong Son ecological region. The forest and forestry land covers nearly 82% of the natural area, and forest coverage in 2023 reached 68.69%.
Carbon credit is a tradable certificate representing the right to emit one ton of greenhouse gas, specifically CO2. It represents the right to emit one metric ton of CO2 or an equivalent amount of other greenhouse gas (tCO2e) into the atmosphere.
