Deputy Minister of Agriculture and Rural Development Tran Thanh Nam on September 23 met with a World Bank (WB) delegation to discuss preparations for signing the Emission Reduction Payment Agreement (ERPA) with the Transformative Carbon Asset Facility (TCAF).

Hanoi (VNA) – Deputy Minister of Agriculture and Rural Development Tran Thanh Nam on September 23 met with a World Bank (WB) delegation to discuss preparations for signing the Emission Reduction Payment Agreement (ERPA) with the Transformative Carbon Asset Facility (TCAF).

This agreement aims to support a sustainable development project targeting 1 million ha of quality, low-emission rice linked to green growth in the Mekong Delta by 2030.

Nam highlighted the initial success of pilot models in several localities, which have shown a remarkable 30% reduction in costs for seeds and agricultural inputs. Additionally, rice prices and farmers’ incomes have increased, with production being fully contracted by enterprises.

WB senior expert Li Guo announced that the TCAF has approved total funding of 33.3 million USD, with the potential to increase to 40 million USD. This funding will be disbursed based on results and in two phases. The TCAF’s commitment to providing this funding will be valid for 12 months, and the WB is expected to approve the funding by signing the ERPA.

In addition, the TCAF will provide 2 million USD in technical assistance, directly managed by the WB, to support capacity-building activities aimed at implementing Article 6 of the Paris Agreement and other relevant initiatives.

Both sides agreed on the methodology for measuring, reporting and verifying (MRV) greenhouse gas emissions from rice production. This MRV process will be used to generate transferable carbon emission reduction credits for exchange with the TCAF and support the country’s Nationally Determined Contributions (NDC) commitments.

The Hanoi meeting also discussed plans to hold workshops to raise awareness among relevant ministries and agencies regarding experiences in carbon market access, the signing of the ERPA and the Mitigation Outcome Purchase Agreement (MOPA) or the Internationally Transferred Mitigation Outcomes (ITMO), and domestic procedures for approving the ERPA signing.

VNA

Published Date: September 23, 2024