The Vietnamese government has approved the transfer of one million tonnes of CO₂ emission reductions from plantation forests in the north-central region to the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.
The credits form part of a surplus of 5.9 million tonnes generated under the first phase of Vietnam’s Emission Reductions Payment Agreement (ERPA), which in 2020 secured revenues of $51.5 million. Around 95 per cent of the transferred credits will be returned to Vietnam to support its Nationally Determined Contributions (NDCs) under the Paris Agreement.
The price of the transfer is based on payment terms agreed five years ago. At the earlier average rate of $5 per tonne, the additional credits could yield around $5 million. Proceeds will be distributed to forest owners, local authorities and organisations managing natural forests across five provinces — Thanh Hoa, Nghe An, Ha Tinh, Quang Tri and Thua Thien Hue. Some funds will also be directed towards groups engaged in forest protection, sustainable livelihoods and income support for communities.
The Ministry of Agriculture and Rural Development first signed the ERPA with IBRD in 2020, covering 10.3 million tonnes of CO₂ reductions. Verified reductions in 2018–19 exceeded this figure, leaving a 5.9 million-tonne surplus. IBRD subsequently offered to purchase one million tonnes from this balance, with the government giving its approval last year.
The remaining 4.9 million tonnes will be retained for Vietnam’s NDC commitments, as further sales are uncertain and carbon credit values typically decline over time.
