Vietnam transfers 5.15 million tons of CO2 to LEAF/Emergent

On October 31^st at the afternoon local time (midnight same date in Vietnam's time), the event takes place in Glasgow (Scotland) on the occasion of the working trip of the delegation of the Ministry of Agriculture and Rural Development (MARD) led by Minister Le Minh Hoan, within the framework of the working trip of the high-ranking Vietnamese delegation led by Prime Minister Pham Minh Chinh to the 26^th UN Climate Change Conference of Parties (COP26).

The two signatories of the Letter of Intent are the Ministry of Agriculture and Rural Development (MARD) and the Organization for Forest Financing (Emergent) - the trustee of the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition, with the participation of Minister Le Minh Hoan and Emergent CEO Eron Bloomgarden.

With this Letter of Intent, Vietnam transfers to LEAF/Emergent 5.15 million tons of CO₂ emissions reduction from forests in the South Central region and Central Highlands in the 2022-2026 period.

LEAF/Emergent will pay for this service with a minimum price of USD 10/ton of CO₂, resulting in a total value of USD 51.5 million. The registered area of emissions reduction commercial forest is 4.26 million ha, including 3.24 million ha of natural forest and 1.02 million ha of plantation forest.

Vietnam is a leading country in the implementation of activities to reduce greenhouse gas emissions from forests on a large scale. This Letter of Intent further marks Vietnam's progress in mobilizing new resources for forest protection and development in line with the achievement of national targets on climate change mitigation.

“The trading for emissions reduction from forests is not only a strategic goal but a specific action plan of Vietnam as well as the fruit of effective cooperation between Vietnam, LEAF and Emergent with the valuable support of many countries and international organizations," Mr. Le Minh Hoan, Minister of Agriculture and Rural Development, said at the signing ceremony.

The Vietnam MARD Minister added that the implementation of the Letter of Intent will contribute to integrating the value of forests, promoting sustainable forest management in association with improving the quality of life for local people and communities, and ensuring Vietnam’s ecological safety and socio-economic development.

Vietnam becomes the first country in the Asia-Pacific and one of the first four countries in the world to sign a Letter of Intent with LEAF/Emergent. This will serve as the foundation for the two parties to continue negotiating and developing content with the goal that within 12 months after signing Vietnam will prepare to sign an Emissions Reduction Purchase Agreement (ERPA) with LEAF/ Emergent. ERPA is a new tool to help encourage sustainable forest management at a grand scale and connect countries to other sources of climate finance.

After signing the Letter of Intent, the Ministry of Agriculture and Rural Development of Vietnam will cooperate with relevant ministries and branches as well as provinces in the South Central region and the Central Highlands to make preparations for the ERPA within 12 months, guaranteeing to meet the requirements and international practices and complying with the laws of Vietnam.

Benefits from the Emissions Reduction Purchase Agreement (ERPA)

The Letter of Intent and later ERPA is assessed to bring practical benefits and open up opportunities to realize the implementation of payment for forest environmental services:

- Contribute to increasing income for forest owners, people and businesses through revenue from emission reduction results, improve the productivity of planted forests, and improve the sustainability of livelihoods

- Raise awareness of all levels of government, management agencies, forest owners, communities, households and private sectors about the value of forest carbon services, understand the economic and environmental benefits brought by forests.

- Improve the efficiency of forest management, protection and development of the locality and forest owners; attract rural laborers, create jobs associated with production and life stability, political stability, and strengthening of national security and defense.

- Contribute to protecting the existing forest area and improving the forest cover in the South Central and Central Highlands; improve forest quality through afforestation, forest restoration, strengthening of forests’ protection function and ecological value, and mitigation of impacts from climate change.

- Up to 100% of total emission reduction concessions under ERPA can be used to fulfill Vietnam's commitments in implementing the Paris Agreement and Vietnam's Nationally Determined Contribution (NDC).

- Demonstrate the high vision and responsibility of Vietnam together with the international community in the efforts to adapt and mitigate climate change for sustainable development.

On this occasion, Mr. Nguyen Do Anh Tuan - Director of the International Cooperation Department, representing the Ministry of Agriculture and Rural Development and Mr. Carlos Montanes - CEO of HIPRA Group (Spain) has exchanged logo of support of the Group of 50 million doses of vaccines against avian diseases to Vietnam (photo above - Photo: HA).

HIPRA Group is one of the largest vaccine manufacturers in the world and is operating in Vietnam. HIPRA is collaborating with T&T Group in research and clinical trials of a vaccine against Covid-19, towards the transfer of production technology to the Vietnamese side. HIPRA, T&T Group and Hanoi Medical University are cooperating in establishing a Center for Research and Application of Vaccines in Vietnam.