Viet Nam, WB to sign Emission Reduction Payment Agreement
VGP - Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, on September 23, met with a World Bank (WB) delegation to discuss preparations for signing the Emission Reduction Payment Agreement (ERPA) with the Transformative Carbon Asset Facility (TCAF).
Illustrative image. Photo: VNA
This agreement aims to support a sustainable development project targeting 1 million ha of quality, low-emission rice linked to green growth in the Mekong Delta by 2030.
Deputy Minister Tran Thanh Nam highlighted the initial success of pilot models in several localities, which have shown a remarkable 30 percent reduction in costs for seeds and agricultural inputs.
Additionally, rice prices and farmers' incomes have increased, with production being fully contracted by enterprises.
Also, he said that some organizations and individuals did not understand the project's purpose. The project is not to sell carbon credits but to increase the sustainable value of Vietnamese rice.
That is to reorganize production, support people to increase income and reduce emissions in rice production, contributing to the implementation of the Government's commitment to reduce greenhouse gas emissions.
WB senior expert Li Guo announced that the TCAF has approved total funding of 33.3 million USD, with the potential to increase to US$40 million. This funding will be disbursed based on results and in two phases.
The TCAF's commitment to providing this funding will be valid for 12 months, and the WB is expected to approve the funding by signing the ERPA.
Additionally, the TCAF will provide US$2 million in technical assistance, directly managed by the WB, to support capacity-building activities to implement Article 6 of the Paris Agreement and other relevant initiatives.
Both sides agreed on the methodology for measuring, reporting and verifying (MRV) greenhouse gas emissions from rice production.
This MRV process will generate transferable carbon emission reduction credits for exchange with the TCAF and support the country's Nationally Determined Contributions (NDC) commitments.
The meeting also discussed plans to hold workshops to raise awareness among relevant ministries and agencies regarding experiences in carbon market access, the signing of the ERPA and the Mitigation Outcome Purchase Agreement (MOPA) or the Internationally Transferred Mitigation Outcomes (ITMO), and domestic procedures for approving the ERPA signing./.
