In 2023, Vietnam successfully sold 10.3 million forest carbon credits.
According to the Report of the Forestry Department, in 2023, the whole country will plant about 250,000 hectares of forest, reaching 102% of the 2023 plan. The forest coverage rate is 42.02%, reaching the planned target. Total revenue from all types of forest environmental services in 2023 will reach 4,130.4 billion VND.
WB HAS PAID VIETNAM 41.2 MILLION USD FOR CARBON CREDITS
Mr. Nguyen Quoc Tri, Deputy Minister of Agriculture and Rural Development, said that 2023 marks a very important milestone, for the first time in Vietnam, the forestry sector has successfully sold 10.3 million credits. forest carbon (10.3 million tons of CO2) through the World Bank (WB). With a credit selling price of 5 USD/ton of absorbed carbon, the total value of the contract is up to 51.5 million USD (about 1,250 billion VND).
The sale of carbon credits is part of the greenhouse emissions payment agreement (ERPA) in the North Central region signed on October 22, 2020 between the International Bank for Reconstruction and Development (IBRD) of the World Bank (WB). ) and the Ministry of Agriculture and Rural Development.
In early August 2023, the WB paid the first installment of ERPA to the Ministry of Agriculture and Rural Development of 41.2 million USD (equivalent to 997 billion VND), achieving 80% of the emission reduction results according to the signed ERPA. The remaining amount of 10.3 million USD, equivalent to 249 billion VND, will be paid after completing the transfer of 10.3 million tons of CO2.
"The money from selling carbon credits will be paid to forest owners, commune-level People's Committees and organizations... assigned to manage natural forests. In addition, part of the money will be paid to other groups with related activities. to develop and reduce deforestation and forest degradation, increase income, and improve livelihoods for people working in the forest."
According to the Forestry Department.
To date, the Vietnam Forest Protection and Development Fund has received the first payment from the WB and has disbursed it in full so that the provinces can urgently make payment plans for forest owners in 6 North Central provinces.
Among these 6 provinces, Nghe An is the province with more than 282 billion VND disbursed, followed by Quang Binh with more than 235 billion VND, Thanh Hoa 162 billion VND, Ha Tinh 122 billion VND, Thua Thien Hue 107 billion VND and Quang Tri more than 51 billion VND.
In addition to the number of credits sold, the WB has confirmed the results of emission reduction in the entire North Central region in the first period (January 1, 2018 - December 31, 2019) reaching 16.21 million tons of CO2 (equivalent to 16.21 million tons of CO2). million credits). Of which, the amount transferred under the signed ERPA is 10.3 million tons of CO2. With 5.91 million tons of CO2 remaining, the World Bank wants to buy an additional 1 million tons of CO2. With 4.91 million tons of CO2 remaining, the Ministry of Agriculture and Rural Development is asking the Government for approval to develop an exchange, transfer, and trade plan to create additional resources for forest protection and development. in the North Central region.
Forest carbon credits are generated from project activities that reduce greenhouse emissions such as reducing deforestation and forest degradation; Enhance 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.
FOREST PRODUCTS EXPORT DOES NOT MEET TARGET
Regarding the export situation of wood and forest products in 2023, the Forestry Department said it will only reach 14.390 billion USD, down 15.8% compared to 2022. The reason for the decline is due to many market fluctuations and instability. At the time, influenced by the Russia-Ukraine conflict; Consumers in the US and EU markets are tightening spending on non-essential products, including wood products. However, the trade surplus value of forest products is still estimated at 12.199 billion USD.
In 2023, due to the impact of the El Nino phenomenon, unusual weather developments and dry hot weather, the risk of forest fires is always high. There still exist hot spots for deforestation, illegal trading and transportation of forest products in some localities, especially the Northwest and Central Highlands regions; South Central region.
The situation of specialized forest protection forces quitting and quitting their jobs occurs in many places and in many areas where it is difficult to recruit new workers. Infrastructure for forestry development has not been invested properly, especially in forest management boards and forestry companies with weak infrastructure, equipment, and facilities for research work. and seed production is lacking and outdated.
Deputy Minister Nguyen Quoc Tri also said that last year was a year of many difficulties and challenges for the forestry industry, from supply and demand chain disruptions affecting trade and logistics issues. In addition, climate change is a factor affecting the forestry industry: In 2023, there will be up to 300 forest fires, however, the damage area in our country is still low when compared to many countries around the world. gender.
"In 2024, the forestry industry has set a goal to strive for the national forest coverage rate to remain stable at 42.02%; the growth rate of forestry production value will reach 5.0-5.5%; planting 245,000 hectares of concentrated forests; 140 million scattered trees planted; timber exploitation output from planted forests reached 23 million m3; export turnover of wood and forest products 17.5 billion USD..."
Mr. Tran Quang Bao, Director of the Forestry Department.
However, Deputy Minister Nguyen Quoc Tri also acknowledged the forestry industry's efforts to overcome difficulties in the past year to achieve remarkable results, many targets were completed, many targets reached high levels. Especially the indicators on afforestation, exploitation, collection of forest environmental services, and coverage rate
