News from the Department of Agriculture and Rural Development of Quang Binh province said that for the first time and starting from 2023, Quang Binh and 5 North Central provinces will receive money from forest carbon absorption and storage services.
Accordingly, based on Decree No. 107/2022/ND-CP on piloting the transfer of emission reduction results (selling carbon credits) and financial management of payment agreements to reduce greenhouse gas emissions in the North Central region. , the Ministry of Agriculture and Rural Development will transfer 10.2 million tons of CO2 in the North Central region to the International Bank for Reconstruction and Development (IBRD).
From there, the Central Forest Protection and Development Fund will receive 51.5 million USD from the Carbon Fund through IBRD, then coordinate nearly 50 million USD to the provinces according to regulations. Of which, Quang Binh transferred more than 2.4 million tons of CO2, paid about 235 billion VND in the period 2023-2025. In 2023 alone, Quang Binh will receive 82.4 billion VND (2nd highest among 6 provinces in the region).
According to Mr. Mai Van Minh, Director of the Department of Agriculture and Rural Development of Quang Binh province, of the total budget, 80 billion is used to pay beneficiaries who are forest owners (including households, individuals, communities, organizations and Commune People's Committees); The remaining 2.4 billion VND will be deducted from the Forest Protection and Development Fund of Quang Binh province.
To collect the above amount of money, the forest area of Quang Binh paid for is 469,317 hectares of natural forest (the average amount paid per unit area is about 170,000 VND/ha). Payment content includes: supporting forestry activities to reduce greenhouse gas emissions; Activities that directly contribute to reducing greenhouse gas emissions (natural forest protection, natural forest protection contracts, silvicultural measures); livelihood development support activities; management.
Forest carbon credits are generated from project activities that reduce greenhouse emissions such as reducing deforestation and forest degradation; enhance absorption sinks from afforestation, reforestation, vegetation regeneration and forest management enhancement activities. Forest owners can convert the forest area under management and protection into the amount of CO2 absorbed, into carbon credits and can sell these credits in the carbon market through the greenhouse gas emission reduction mechanism.
Vietnam has more than 14.7 million hectares of forest, reaching a coverage rate of 42.02%, is a place to absorb and store a large amount of carbon, and is considered one of the countries with potential for credit projects. forest carbon only. According to analysts, Vietnam's forests can generate about 50-70 million tons of surplus forest carbon credits, generating revenue of up to trillions of dong if exported successfully.
Source: cafebiz
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