HCMC – Vietnam will receive an additional US$5 million (over VND130 billion) from the transfer of carbon credits to the World Bank, the Vietnam Forest Protection and Development Fund said.
The payment, expected in September or October 2025, comes from the sale of one million tons of carbon dioxide (CO2) under a Government resolution on transferring surplus emission reductions from the north-central region during 2018-2019.
Once the funds are received, the forest fund will submit a financial plan to the Ministry of Agriculture and Environment for approval. The plan will cover allocation of the proceeds in 2025 and 2026 to ensure timely distribution to local beneficiaries under existing regulations.
The carbon transfer is part of the Emission Reductions Payment Agreement (ERPA), signed in October 2020 between Vietnam’s agriculture ministry and the World Bank, representing the Forest Carbon Partnership Facility (FCPF). The agreement involved the transfer of 10.3 million tons of CO2 from the north-central region between 2018 and 2024, priced at US$5 per ton, with a total value of US$51.5 million.
So far, Vietnam has received the full US$51.5 million.
