Vietnam Sells 10.3M Forest Carbon Credits for $51.5M through World Bank

Hanoi – Vietnam has achieved a significant milestone in the forestry sector by successfully selling 10.3 million forest carbon credits for the first time, earning a total of 51.5 million USD. The sale was made through the World Bank as part of the Emission Reductions Payment Agreements (ERPA) signed between the International Bank for Reconstruction and Development (IBRD) and the Ministry of Agriculture and Rural Development (MARD). The World Bank has already paid the first installment of 41.2 million USD to the Vietnamese ministry, with the remaining amount to be paid after the completion of the transfer of 10.3 million tonnes of CO2. This sale has brought positive results for the north central region’s emission reduction efforts. Despite the challenges faced by the forestry industry in 2023, including disruptions in the supply and demand chain, logistics problems, and climate change, Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri praised the sector’s resilience and urged the prompt issuance of policies and mechanisms to facilitate its development in the coming year. Vietnam’s commitment to reforestation and forest preservation remains strong, with the country surpassing its yearly plan by planting approximately 250,000 hectares of forest last year, resulting in a forest coverage rate of 42.02%. Additionally, the total revenue from all forest environment services reached over 4.1 trillion VND (169 million USD). The successful sale of forest carbon credits demonstrates Vietnam’s dedication to sustainable forest management and its ongoing efforts to combat climate change.