Vietnam and WB sign the Emissions Reduction Purchase Agreement (Photo: VGP/ Do Huong)

ERPA is a legal contract between entities to buy and sell carbon credits.

Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said implementing the ERPA will create a new additional source of financing for activities to reduce deforestation and forest degradation, increase forest income toward a domestic and international carbon credit market, and contribute to forest protection and sustainable development in Vietnam’s north-central and central region.

Tuan said: “The Vietnam Administration of Forestry will implement the agreement. It will consult with Ministries, sectors, and international organizations on regulations for transferring greenhouse emission reduction credits and establish an expenses, fund management, and benefits mechanism”.

Vietnam is the first country in Asia-Pacific to sign an ERPA.