World Bank-funded program strengthens Quang Tri’s forest protection efforts

The Emission Reductions Payment Agreement (ERPA) program in Vietnam’s central region has largely motivated forest conservation and development in Quang Tri as the funding supports forest management agencies and directly benefits local communities, particularly ethnic minorities.

A community-based forest protection team in Ho Village, Huong Son Commune, Hoa District, Quang Tri. Photo: T.T

The Emission Reductions Payment Agreement (ERPA) between Vietnam and the World Bank’s Forest Carbon Partnership Facility (FCPF) since October 2022 enabled the transfer of 10.3 million tons of carbon dioxide (CO2) emission reductions in six central provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien-Hue.

The program has generated income, curbed deforestation, and enhanced livelihoods of locals, especially ethnic minorities.

Quang Tri is one of six north-central provinces benefiting from the North Central Emission Reductions Agreement for the 2018-2024 period, signed between the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) and the World Bank.

As part of this agreement, Quang Tri received over VND 51 billion (US$1.96 million) from the Vietnam Forest Protection and Development Fund. The province has issued guidelines, notifications, and action plans regarding ERPA payments to forest owners and relevant stakeholders.

To promote a unified understanding of the ERPA emission reduction payment policy, the Quang Tri Forest Protection and Development Fund has intensified communication efforts to disseminate Decree 107/2022/ND-CP across multiple target groups, namely authorities of all levels, sectors, beneficiaries, and residents.

Additionally, the fund has conducted specialized training sessions on forest carbon sequestration and storage services to strengthen the capabilities of forest owners, commune authorities, and community beneficiaries of ERPA fund.

According to the provincial fund, over VND65.5 billion ($2.52 million) in revenue has been generated through the ERPA program, with active disbursements aimed at directly supporting beneficiaries, primarily households and communities engaged in forest protection and development. In 2023, over VND16 billion ($616,000) was disbursed, equal to 99.9% disbursement rate. The 2024 plan allocated over VND21.7 billion ($836,000), with more than VND19.5 billion ($751,000) already disbursed.

For 2025, the province has outlined a disbursement plan with a projected budget of over VND25.7 billion ($990,000), including more than VND23.2 billion designated for direct payments to beneficiaries. The fund is currently coordinating with forest rangers and forest owners to compile and verify natural forest areas and beneficiary lists for submission to the provincial People’s Committee.

The ERPA program has left a positive impact on forest conservation and development in Quang Tri, especially in the mountainous districts of Huong Hoa and Dakrong, which collectively account for nearly 80% of the province’s natural forest area (96,157 ha out of 126,694 ha) and are predominantly inhabited by ethnic minorities. Despite its relatively brief implementation period, ERPA funding has significantly increased income for forest owners, particularly ethnic minority communities and households in remote areas.

Consequently, residents are becoming more aware of the importance of forest protection and are actively participating in conservation efforts, resulting in reduced deforestation. ERPA payments have been disbursed to 63 community groups and ethnic minority households managing 12,349 ha of natural forest, totaling over VND1.5 billion ($57,800), and to 82 ethnic minority households managing 557 ha of natural forest, getting over VND70 million ($2,690).

The program has also strengthened stable employment, increased income, and improved living conditions for remote residents. Notably, 47 communities receive an additional VND50 million ($1,900)/each annually to implement livelihood development projects, such as repairing community houses, installing streetlights, and purchasing livestock, contributing to infrastructure development and public welfare.

Meanwhile, organizations tasked with forest management in the province also receive substantial ERPA funding to ensure ongoing and effective forest management and protection. Currently, eight forest management organizations receive ERPA payments. In 2023, they managed 85,753 ha of forest and received over VND10.8 billion ($416,000). In 2024, funding covered 85,652 ha, totaling over VND13.2 billion ($508,700). In 2025, ERPA payments to these organizations are projected to exceed VND15 billion ($578,000).

Through the ERPA program, awareness and understanding of policies on forest management, protection, and forestry development have been significantly enhanced among forest owners and local authorities. ERPA payments have provided a strong incentive for residents to actively participate in forest protection, contributing to improvements in both forest quality and coverage.

As a result, violations of forestry laws, including deforestation, forest land encroachment, and forest fires, have been largely reduced. Throughout the ERPA greenhouse gas emission reduction payment process, local authorities have actively directed and monitored implementation, resulting in substantial progress in forest management, protection, and development across the province.

The ERPA program has proven to be a vital mechanism, not only in advancing the sustainable protection and development of Quang Tri’s forest resources but also in delivering tangible benefits to local residents, particularly ethnic minorities, while bolstering the effectiveness of state forestry management.

In 2023, Vietnam completed the transfer of these emission reductions to the World Bank, receiving $51.5 million, making it the first country in the East Asia Pacific region to receive a results-based payment from the FCPF for verified, high-integrity carbon credits.

The ERPA aligns with Vietnam’s commitments under the Paris Agreement and contributes to its Nationally Determined Contributions (NDCs) by promoting sustainable forest management and reducing greenhouse gas emissions. Notably, 95% of the transferred emission reductions are counted toward Vietnam’s NDC targets.

Bao Binh – Linh Pham