Photo: baodautu.vn

At a meeting on May 4, discussions focused on the Emission Reductions Payment Agreement (ERPA) with Emergent, which connects forest countries with corporate buyers under the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition. The meeting also covered the drafting of a decree on forest carbon sequestration and storage services.

The proposed deal follows a letter of intent signed four years ago between the Ministry of Agriculture and Environment (MAE) and Emergent, the coordinator of the LEAF Coalition – a global public-private initiative financing emissions reductions from tropical forests.

Under the plan, Vietnam would transfer 5.15 million forest carbon credits generated in the Central Highlands and South Central regions during the 2021-2025 period through an ERPA, at a floor price of $10 per credit.

Following the transaction, all credits will be retained to contribute to Vietnam’s nationally determined contribution, which outlines each country’s emissions reduction commitments submitted to the United Nations every five years.

ERPAs are designed to help countries mobilise international finance to support forest-based emissions reductions, including reducing deforestation and forest degradation, conserving and enhancing carbon stocks, and promoting sustainable forest management under REDD+ mechanisms.

According to the MAE, Vietnam has completed the necessary technical and institutional requirements to access results-based payments. The ministry plans to proceed with negotiations and finalise the agreement once it receives approval from the prime minister or after the decree on forest carbon is issued.

“The authority to negotiate and sign the agreement rests with the ministry, which should commence talks in June immediately after the decree on forest carbon sequestration and storage services comes into effect,” Deputy Prime Minister Dung said.

Regarding the draft decree, the ministry has proposed decentralising administrative procedures related to forest carbon credit issuance to local authorities. It aims to complete verification and issuance of credits for the 2021-2022 period within this quarter, and submit proposals for the 2023-2025 period in the third quarter.