Disbursing ERPA Funds correctly and fully: Accelerating the payment progress

Over VND 11 billion distributed to beneficiaries

Ha Tinh is one of the six provinces implementing Decree No. 107/2022/ND-CP dated December 28, 2022, on piloting the transfer of emission reduction results and financial management of greenhouse gas emission reduction payment agreements in the North Central region (ERPA agreement).

In accordance with Decree 107/ND-CP, the People's Committee of Ha Tinh Province issued Decision No. 178/QĐ-UBND on January 16, 2024, approving the overall financial plan from the ERPA source (first round) for Ha Tinh, and Decision No. 302/QD-UBND on January 26, 2024, approving the financial plan for 2023 from revenue from the greenhouse gas emission reduction payment agreement in the North Central region (ERPA). Accordingly, Ha Tinh received USD 1,776,939 (over VND 122 billion) in revenue from emission reduction results, which will be allocated over three phases from 2023 to 2025 for payments to over 201,000 hectares of natural forest.

The Ha Tinh Forest Protection and Development Fund believes that the ERPA policy will create an important funding source to maintain forest management and protection efforts, contributing to the national emission reduction goals and limiting global climate change. The successful implementation of the ERPA pilot will serve as a foundation for the Government and relevant ministries to expand the payment system nationwide.

"Recognizing the importance of pilot payments in the North Central region in general and Ha Tinh in particular, for more than two years, we have closely coordinated with relevant specialized agencies and forest owners to overcome difficulties and ensure the ERPA payment is completed in compliance with the law, without missing any eligible beneficiaries," said Mr. Duong Van Thang, Deputy Director of the Ha Tinh Forest Protection and Development Fund.

According to him, as of November 28, 2023, the ERPA source has disbursed over VND 11.8 billion to beneficiaries out of the approved total of more than VND 36.1 billion. This includes over VND 433 million paid to households and individuals; more than VND 203 million to communities; over VND 44 million to the People's Committees of communes managing forests (paid to 5 out of 42 communes); and more than VND 11.2 billion to forest owner organizations (paid to 5 out of 16 organizations).

It is expected that by December 31, 2024, the disbursement results of the Ha Tinh Forest Protection and Development will reach over VND 40 billion; the disbursement results for forest owners, mainly organizations, are estimated at nearly VND 37 billion, achieving 50% of the plan.

Simultaneous payment for 2023 and 2024 sources

To accelerate the disbursement progress, for the 2023 source of organizations, based on the annual financial plan approved by the competent authorities, the Ha Tinh Forest Protection and Development Fund will make an advance payment of 50% of the amount to be paid to the forest owners. Currently, most forest owners, particularly organizations, and other beneficiaries have developed their financial plans for approval by the relevant authorities. The amount the Fund will disburse as an advance payment of 50% of the ERPA funds according to the approved plan for the forest owners is over VND 14 billion. Additionally, the Fund will also disburse funds for beneficiaries at the commune level, with a total of over VND 41 million.

Along with the disbursement of the 2023 funds, the Ha Tinh Forest Protection and Development Fund has notified forest owners of the payment amount according to the 2024 financial plan. Currently, the units are preparing financial plans to submit to the relevant authorities for approval.

For forest owners who are households, individuals, or communities, the 2024 payment amount has been notified to the beneficiaries. Local People's Committees are currently reviewing and compiling a list of households, individuals, and communities to send to the fund for disbursement according to current regulations.