Billions hung on old-growth forest: Collect billions of dongs thanks to carbon credit trading

Mr. Nguyen Van Duan, Deputy Director of Quang Binh Forest Protection Sub-department, shared that with the support of The Forest Carbon Partnership Facility (FCPF), the province has established the Quang Binh Forest Protection and Development Fund to manage Developing emission reference routes as a foundation for computing forest carbon emissions, absorption, and storage. Raising awareness and providing training on REDD+. The province has also worked with the MARD to draft and complete the "pilot emission reduction program document based on actual results in the North Central region".

Abundant potential

Quang Binh is expected to gain 235 billion VND from the sale of carbon credits to the IBRD between 2023 and 2025. As a result, it generates cash for approximately 11,000 forest owners while also contributing to sustainable forest management and preservation efforts.

Management and conservation of natural forests in Quang Binh province are mostly allocated to management boards of protective forests or specialized forests, as well as forestry firms, homes, individuals, and community administrations.

To safeguard the forest and ensure its sustainability, the government enacted Decree No.107 on the pilot transfer of emission reduction outcomes (carbon credit selling) and financial management of payment agreements on greenhouse gas emissions in the Northern Central area on December 28, 2022.

Quang Binh suggested MARD that it join the project "Supporting ready preparation to implement REDD+ in Vietnam" by FCPF, which is sponsored by the World Bank. REDD+ is an effort that aims to decrease greenhouse gas emissions by mitigating deforestation and forest degradation, preserving forest carbon stocks, managing forestry resources sustainably, and increasing forestry carbon stocks.

With the province's determination and the FCPF's active support, Quang Binh has been allocated over 235 billion VND (the second highest among the six North Central provinces) from the agreed-upon funding for emissions reduction for natural forest targets between 2023 and 2025. Based on guidance documents from the Government and the Ministry of Agriculture and Rural Development, Quang Binh's Department of Agriculture and Rural Development has advised the Provincial People's Committee to issue decisions and implementation plans for the province's greenhouse gas emissions reduction payment agreements. Directing the BV-PTR Fund to form an account for the central fund allocation as specified. Directing the Forest Protection Department to work with local governments and forest management units to assess the province's natural forest area in order to permit payment for greenhouse gas emission reductions.

According to Mr. Nguyen Van Long, Director of Quang Binh's Forest Protection Department and Director of the BV-PTR Fund, payments of 68 billion VND have been given to recipients so far, accomplishing 85% of the goal. "The remaining money will be incorporated in the budget plan for 2024 so that payments may continue in accordance with legislation. Currently, forest owners, including organizations, homes, individuals, communities, and commune-level People's Committees in charge of forest management, have received this amount at an average rate of over 170,000 VND per hectare," Mr. Long said.

Forest Protection Management Boards under district People's Committees, local administrations of forested communes, and two companies - Bac Quang Binh Company, Long Dai Company, and Phong Nha - Ke Bang National Park - manage and safeguard Quang Binh province's natural forests. These forest owners' forest protection forces are becoming more powerful, with more experience and professionalism in their forest conservation and development responsibilities. Obtaining more financing from carbon credit sales to promote improved task execution is critical to ensure that forests grow greener.

To guarantee sustainable forests

The Forest Protection Management Board of Quang Ninh district manages and protects around 52,000 hectares of forest. In 2023, the unit earned 8.2 billion VND from carbon credit sales. Mr. Do Minh Cu, Director of the FPMB in Quang Ninh district, stated: "With this money, we will quickly plan expenditures in line with higher authorities' recommendations. Specifically, 10% of the cash will go toward management operations such as acquiring equipment and vehicles for forest patrols, providing fuel for cars and boats during patrols, and forest fire prevention and suppression efforts. Insufficient financial resources have made it difficult to conserve forests and develop sustainable livelihoods for local inhabitants. However, since obtaining assistance from national target programs and forestry development goals, the degree of support for forest conservation has improved. To effectively combat forest encroachment, the Quang Ninh FPMB has tightened contracts with expert forest protection personnel, who will be deployed at checkpoints and stations in sensitive regions, crossroads, and riverbanks.

Phu Minh village in Thuong Hoa commune (a hilly location in Minh Hoa district) now manages and protects 720 hectares of community woods. Because to the community's excellent conservation efforts, the Phu Minh community forest presently includes numerous important wood species with considerable reserves. Previously, community members involved in forest conservation received 400,000 VND/ha/year, which provided them with cash and resulted in greater forest protection. Their excitement was heightened when the neighborhood just got an extra 170,000 VND/ha/year in carbon credit sales.

In 2023, hundreds of residents in Phu Minh village got financial assistance from forest preservation funds. Some got more than 5 million VND for patrolling and forest guarding.

Regarding the potential of natural forests, Mr. Nguyen Van Duan, Deputy Director of the Forest Protection Department of Quang Binh, said that, in addition to leveraging the strengths of natural forests, Quang Binh will expand the scope of forest targets, such as assessing eligible areas and estimating the potential for greenhouse gas emissions reduction from implementing new forest planting activities according to international standards, converting small-scale timber forests

Carbon credit sales generated more than 20 billion VND for Phong Nha-Ke Bang National Park. Currently, the park is making payments to homes and communities in 13 buffer zone communes.