Vietnam has approved the transfer of 1 million tons of surplus CO₂ reductions to the International Bank for Reconstruction and Development (IBRD), under Resolution No. 261/NQ-CP issued on August 29, 2025. The credits stem from plantation forests in the north-central region and build on Vietnam’s 2020 Emission Reductions Payment Agreement (ERPA) with the World Bank.

The deal represents part of the 5.9 million tons of surplus reductions achieved between 2018–2019, exceeding the ERPA’s original 10.3 million-ton target. At an average price of $5 per ton, the transfer is expected to generate about $5 million.

Proceeds will support forest protection, sustainable livelihoods, and community development in five provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, and Thua Thien Hue. Most funds will flow directly to forest owners, commune authorities, and organizations managing natural forests.

Under the agreement, 95% of the credits will be reassigned to Vietnam, allowing the country to count them toward its Nationally Determined Contributions (NDCs) under the Paris Agreement. The remaining 4.9 million tons of surplus reductions will be retained for Vietnam’s future NDC implementation.

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