The World Bank (WB) announced on March 21st that Vietnam has received a $51.5 million payment for verified reductions in carbon emissions.

This payment recognizes Vietnam's efforts to reduce deforestation and forest degradation and to enhance carbon storage through reforestation and afforestation. These initiatives fall under the umbrella of REDD+ (Reducing Emissions from Deforestation and Forest Degradation).

Vietnam is the first country in the East Asia-Pacific region to receive a results-based payment from the WB's Forest Carbon Partnership Facility (FCPF).

The payment covers the reduction of 10.3 million tons of carbon emissions between February 1, 2018, and December 31, 2019, marking the largest single FCPF payment to date for high-quality carbon credits.

The payment will directly benefit 70,055 forest owners and 1,356 communities located near forests. Distribution will follow a robust benefit-sharing plan developed through a consultative and transparent process.

Vietnam exceeded the emission reduction targets outlined in its contract with the FCPF, creating surplus carbon credits. The country has the option to sell these credits bilaterally to another nation, through the carbon credit market, or retain them to support its Nationally Determined Contributions (NDCs) and climate commitments.

The Ministry of Agriculture and Rural Development highlights the REDD+ program's success in advancing Vietnam's ambitious NDC targets under the Paris Agreement while simultaneously protecting vital biodiversity hotspots.

"This landmark payment marks a significant step for Vietnam in joining the global carbon credit market. It opens new avenues for financing our ambitious climate commitments and targets," said Carolyn Turk, WB Country Director for Vietnam.

Vietnam's REDD+ program generated 16.2 million verified emission reductions between 2018 and 2019, exceeding the contracted 10.3 million by 5.9 million. The World Bank has expressed interest in purchasing an additional 1 million emission reductions beyond the contracted amount.

The program protects the majority of Vietnam's tropical forests, covering 3.1 million of the 5.1 million hectares within the program area.