Nghe An: Over 115 billion VND distributed to 26 forest owners from carbon credit funds

As part of the plan to implement the Emission Reductions Payment Agreement (ERPA) for Vietnam during the 2018–2025 period, Nghe An province has seen 26 forest owners, including various communities and organizations, receive over 115 billion VND.

According to the Nghe An Forest Protection and Development Fund, there are 332 community groups acting as forest owners and 457 communities participating in forest management agreements with forest-owning organizations benefiting from ERPA.

By January 2025, ERPA had disbursed 115.8 billion VND to 26 organizational forest owners in the province, out of a total plan of over 133.8 billion VND. This accounted for 87% of the total funding for organizational forest owners and 67% of the total funds paid to all beneficiaries in the province.

For example, communities managing forests under the Pu Mat National Park's jurisdiction have also benefited. According to Mr. Le Anh Tuan, Director of Pu Mat National Park, by February 2025, the total support from ERPA for 2024 reached over 24 billion VND, with 13 billion VND already disbursed.

The funding from ERPA, generated through forest protection and greenhouse gas emission reduction activities, has provided financial support for forest owners to manage and protect forests. It also supports livelihood development linked to forest conservation and development for local communities, helping to stabilize income and improve the living standards of residents in beneficiary areas. This allows them to focus on and commit to forest management and conservation.

Mr. Nguyen Danh Hung, Deputy Director of the Department of Agriculture and Rural Development, stated that alongside the government and the provincial people's committee’s decisive and comprehensive measures, the ERPA implementation had a very positive impact on forest management, protection, and development.

This funding serves as a valuable resource to support forest protection and development efforts, improve livelihoods, and increase the income and living conditions of those working in the forestry sector. Most of the funds are directed toward communities in areas with a high concentration of ethnic minorities, supporting the construction of essential community facilities. Therefore, the policy's effectiveness is very evident.

Additionally, the support helps enhance the role and close cooperation between the public and forest-owning organizations in forest protection.

The North Central Region’s Emission Reduction Payment Agreement (ERPA) is a carbon transfer agreement signed on October 20, 2020, between the Ministry of Agriculture and Rural Development and the International Bank for Reconstruction and Development (IBRD), the trustee of the Forest Carbon Partnership Facility (FCPF). According to the agreement, Vietnam will transfer 10.3 million tons of CO2, with an additional maximum of 5 million tons (if available), from six North Central provinces to the FCPF during the 2018–2025 period for a total of 51.5 million USD.

In return, the IBRD will transfer approximately 95% of the contracted emission reductions and any additional reductions (if available) to the Ministry of Agriculture and Rural Development for use in Vietnam's Nationally Determined Contributions (NDC).

On December 28, 2022, the government issued Decree 107/ND-CP on piloting the transfer of emission reduction results and managing ERPA financial resources. On April 22, 2022, the Nghe An Provincial People's Committee issued Plan No. 124/KH-UBND to implement the North Central Region Emission Reduction Payment Agreement in the province.

This is a crucial policy that defines how organizations, individuals, households and communities can benefit from emission reduction services from forests.