USAID Helps Vietnam Generate Funds for Improved Forest Protection

Thursday, August 22, 2019

Vietnam’s Payment for Forest Environmental Services (PFES) system, designed with USAID support, engages individuals and communities to sustainably manage and protect their forests by providing compensation for their efforts. USAID’s Vietnam Forests and Deltas project is now supporting Vietnam to improve this policy by helping develop innovative carbon PFES pilots. Under these pilot models, local companies that are large emitters will pay forest owners for the carbon sequestration provided by healthy forests, as healthy forests absorb carbon dioxide.

On August 7, the project and the Ministry of Agriculture and Rural Development (MARD) organized a workshop in Hanoi to get feedback on a new draft policy for carbon PFES from representatives of government ministries, four target provincial governments, coal-fired power plants, and cement factories. Based on recommendations from the workshop, MARD will improve the draft policy, which includes proposed payment rates and revenue distribution approaches. The revised policy will be submitted to the Prime Minister for consideration and approval.

So What? MARD estimates that the carbon PFES pilots will generate approximately $7 million in the four target provinces. MARD will then use lessons learned from these pilots to develop a national-level carbon PFES policy, which could generate annual revenue of about $100 million to finance improved forest management.

Last updated: August 14, 2020

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