Việtnam receives biggest to date Carbon Credits worth $51.5m from World Bank

HANOI, March 22, 2024 – Vietnam has recently received a significant payment of US$51.5 million for its efforts in reducing carbon emissions through forest conservation, as stated in a press release by the World Bank on Thursday.

This payment, the first of its kind in the East Asia Pacific region, comes from the World Bank’s Forest Carbon Partnership Facility (FCPF). It’s a reward for Vietnam’s success in reducing deforestation and forest degradation (REDD+), as well as for boosting carbon storage through reforestation and afforestation. These efforts led to a reduction of 10.3 million tons of carbon emissions between February 2018 and December 2019.

The payment, which is the largest ever made by the FCPF for verified carbon credits, is expected to benefit over 70,000 forest owners and 1,300 neighboring communities. The plan for distributing these benefits was carefully developed through a participatory process.

Vietnam’s Minister of Agriculture and Rural Development, Lê Minh Hoan, expressed that this achievement aligns with Vietnam’s goals under the Paris Agreement and helps protect biodiversity.

Moreover, Vietnam has exceeded its emission reduction targets and can now sell surplus credits to other buyers or use them to meet its climate commitments.

Carolyn Turk, World Bank Country Director for Vietnam, sees this payment as a significant step for Vietnam in joining the global carbon credit market and financing its climate goals.

The success of Vietnam’s emission reduction program is evident, surpassing its initial targets by 5.9 million tons of carbon. As a result, the World Bank has even offered to purchase an additional 1 million tons of emission reductions.

Vietnam’s tropical forests, which cover a significant portion of its land, are crucial for biodiversity conservation and are home to many ethnic minority groups and forest-dependent communities. These communities have been actively involved in forest management and conservation efforts.

The Forest Carbon Partnership Facility (FCPF) has played a pivotal role in supporting countries like Vietnam in their efforts to combat deforestation and reduce carbon emissions since its launch in 2008.