ERPA Handbook: Q&A for individuals, households and communities

The North Central Region Emission Reduction Payment Agreement (ERPA) was signed on October 20, 2020, between the Ministry of Agriculture and Rural Development and the International Bank for Reconstruction and Development (IBRD), trustee of the Forest Carbon Partnership Fund (FCPF). Under the Agreement, Vietnam is expected to reduce 10.3 million tons of CO2 in 6 North Central provinces (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue) in the period 2018 – 2025 to receive 51.5 million USD from FCPF. 95% of the contracted emissions reductions and additional amounts (if any) will be contributed to Vietnam’s Nationally Determined Contribution (NDC).

On December 28, 2022, the Government issued Decree 107/ND-CP on piloting the transfer of emission reduction results and financial management of the ERPA Agreement. This important policy regulates how organizations, individuals, households, and communities can benefit from reducing greenhouse gas emissions through forest protection. The community in the six mentioned provinces will be paid 68.4% of financial resources, equivalent to 35.22 million USD. Communities, households, and individuals who are forest owners will receive US$8.69 million, and communities contracted for forest protection will receive US$26.53 million. This is an essential funding source to support communities, individuals, and households to improve their lives, maintain forest management and protection, and improve forest quality.

To support the implementation of ERPA, PanNature compiled a handbook, “Policy on payment for emission reduction in the North Central region – Q&A for individuals, households and communities to manage and protect forests.” The handbook, with essential questions and answers on benefit sharing and financial management mechanisms, is expected to provide relevant households, individuals, and communities with the necessary information to implement ERPA under Decree 107/2022/ND-CP. 

The Handbook can be downloaded here (Vietnamese language)