Disbursing ERPA Funds correctly and sufficiently: Degraded forests to become thriving

Thousands of hectares of degraded forest will be enriched

Decree No. 107/2022/ND-CP, dated December 28, 2022, issued by the Government, clearly specifies the beneficiaries of emission reduction sources and the financial management of agreements for greenhouse gas emission reduction payments in the North Central region (ERPA agreements). Since there are almost no community-level beneficiaries participating in the forest protection agreements in Ha Tinh province, forest owners mainly propose forestry measures for nurturing and enriching natural forests.

At the management board of the Ngan Pho watershed protection forest in Huong Son district, out of the total natural forest area of nearly 20,000 hectares under management and protection, more than 200 hectares of degraded forest meet the conditions for forest enrichment measures.

"In 2023, we developed 94 hectares for forest enrichment, and in 2024, more than 116 hectares. The financial plan has already been approved by the relevant authorities, and we will soon hire a consultant for a survey and design to start the bidding process for on-site implementation," said Mr. Nguyen Huu An, Director of the Ngan Pho Watershed Forest Protection Management Board.

According to him, the main technical solution involves clearing vines, shrubs, and unnecessary branches while preserving the natural forest trees for targeted purposes. The implementation area will focus on Sơn Kim 1 and Son Kim 2 communes.

At the Huong Son Forestry and Service Co., Ltd., it is expected that by the end of 2024, 10% of the ERPA funds for forest owners will be disbursed.

"Our forestry measures are aimed at enriching the forest, with an area of more than 76 hectares and a payment of VND 2.6 billion. The design documents are currently awaiting approval from the competent authorities," said Mr. Tran Trung Anh, Deputy Director of the company.

After completing the bidding procedures, the contractor will implement the clearing of vines and bushes across the entire area and set up planting lines to enrich the forest, with a density of 400-500 trees per hectare. After planting, the forest will be cared for over a period of 4-5 years.

Mr. Phan Thanh Tung, Head of the Forest Protection and Nature Conservation Department (Ha Tinh Forest Protection Sub-Department), believes that Ha Tinh's forest carbon credit potential is very large. If forest owners benefit from additional payments under the ERPA pilot policy, it will open golden opportunities for forest owners in Ha Tinh and six provinces in the North Central region, allowing them to make a living and even thrive from forest protection.

Thousands of hectares of degraded forests are expected to soon transform into thriving forests, providing ecological and environmental benefits, combating climate change, and increasing income for forest protectors.

After review, Ha Tinh has over 201,000 hectares of natural forest eligible for ERPA payments. Beneficiaries include 16 organizations as forest owners, 42 commune-level People's Committees, and more than 2,790 households, individuals, and community forest owners.

"We highly appreciate the leading role of the Ha Tinh Forest Protection and Development Fund in implementing ERPA disbursements," said Mr. Tung. "They have proactively coordinated with the Department of Finance, the Department of Agriculture and Rural Development, and the Provincial Forest Protection Sub-Department to provide advice, draft legal documents, and directives, and guide financial planning for forest owners across the province efficiently and promptly."

Supporting livelihoods for local people

After a period of implementing ERPA disbursements, it is clear that the entire political system, especially forest owners, places great hope in this financial support.

Since the program is still in the pilot phase, there have been some challenges during implementation. However, the disbursement process is largely on track. The initial results of the ERPA benefits are evident, particularly in enhancing forest protection and development efforts for forest owners.

Monitoring data from the Provincial Forest Protection Sub-Department shows a reduction in forestry law violations compared to the same period last year. Any incidents that occurred were promptly detected and effectively addressed. Relevant departments, sectors, local authorities, forest owners, and other entities have been performing well in forest management, protection, and wildfire prevention efforts.

Notably, the implementation of the ERPA policy has contributed to creating a significant funding source that helps maintain forest management and protection, supports livelihood development, and improves the living standards of households, individuals, and communities in the province.

With the ERPA funds received, households have additional resources to invest in their livelihoods. Meanwhile, communities benefit from financial resources to build and repair rural roads, village cultural houses, street lighting systems, village loudspeakers, and acquire forest fire prevention tools. They also install signage to promote forest protection and fire prevention. These efforts have enabled the achievement of various targets under the criteria for building new rural areas.

To ensure the timely, compliant, transparent, and accountable disbursement of ERPA funds, the Ha Tinh Forest Protection and Development Fund recently organized three training sessions for forest owners, including organizations and commune-level People's Committees, in Cam Xuyen District, Huong Khe District, and Ha Tinh City. Additionally, it supported forest owners in opening bank accounts to receive disbursement payments.