The Vietnamese Government intends to auction approximately five million tonnes of carbon credits through international trading platforms.

This information was outlined in a report sent by the Ministry of Agriculture and Rural Development (MARD) to the Prime Minister regarding the implementation status of the Emission Reductions Payment Agreement (ERPA) in the North Central Region and the proposal to dispose of the surplus credits for the period of 2018-2019.

Last October the World Bank confirmed Vietnam's emission reduction of 16.21 million tonnes. Of this amount, Vietnam received a payment of VND1.25 trillion (around US$28 million) from the Bank for reducing 10.3 million tonnes of carbon emissions between 1 February 2018 and 31 December 2019.

Of the excess 5.9 million tonnes of carbon credits the Ministry of Agriculture and Rural Development (MARD) plans to sell 1 million to the World Bank while the rest will be auctioned through international trading platforms.

The Ministry plans to seek the World Bank's assistance to find potential buyers under the established ERPA or assist Vietnam in contacting pilot auctions through international trading platforms.

Vietnam has received US$51.5 million for verified emission reduction results from the WB, due to forest loss limitations, forest degradation and increased carbon storage through afforestation and reforestation.

Vietnam has the potential to generate annual revenues of US$200 million by selling approximately 40 million carbon credits according to calculations by the Department of Forestry, as reported by the local media.

The Ministry of Agriculture and Rural Development has outlined seven targets and 11 solutions for forestry management this year.

Key priorities include finalising the national forestry plan and providing support to companies transitioning from production to forestry businesses.