Signs of profiteering carbon credit through funding cooperation agreement

The Hoa Binh Provincial People's Committee dispatched a message to departments, units, and organizations regarding the administration and assurance of security, as well as orders concerning carbon credit.

In order to echo the foreign non-governmental funding mobilization program of Hoa Binh province from 2021 to 2025, numerous foreign units, organizations, and individuals, through a variety of central and local agencies and organizations, provided assistance to implement programs, projects, and non-projects in nearly all districts and cities of Hoa Binh Province, as stated in this document.

In essence, Vietnamese laws regarding the management of aid and the activities of foreign agencies, organizations, and individuals have been generally complied with by both domestic and foreign agencies and organizations. The programs and projects that have been implemented in a variety of disciplines have had a substantial impact on awareness, improved the capacity of staff, improved material conditions, and provided educational and medical equipment. In addition to contributing to the local economic and social development and poverty reduction, they have also enhanced the quality of life for some vulnerable groups in the project areas, increased income, and innovated thinking, production skills, and business practices.

Nevertheless, certain agencies and units have not rigorously adhered to the regulations as a result of management and supervision. The situation in which certain agencies and organizations directly sign "Cooperation Agreements" to receive programs and projects from foreign agencies and organizations continues to occur.

Foreign partners have been observed to exploit financing programs and projects in the environmental protection and climate change response sectors to demand ownership of profits generated from the projects they fund, such as the ownership of carbon credits generated from large timber plantation areas. This demand, according to the People's Committee of Hoa Binh Province, is incompatible with the humanitarian purpose of these activities, contrary to Vietnamese law, and poses a potential risk of economic loss and security complications if preventive and management measures are not prompty implemented.

Local agencies and organizations have not promptly updated pertinent information and lack experience in international cooperation, which is a new issue. Consequently, they have executed "funding cooperation agreements" that violate regulations, thereby permitting foreign entities to incorporate objectionable content.

The Chairman of the Hoa Binh Provincial People's Committee has requested that the Prime Minister's Directive on the strengthening of carbon credit management be thoroughly shared and strictly implemented in order to proactively manage and ensure security in relation to carbon credits in order to fulfill the Nationally Determined Contributions (NDC).

This covers regulations on greenhouse gas emissions in the North Central region, as well as decrees aimed at reducing greenhouse gas emissions and safeguarding the ozone layer. The objective of these measures is to increase the cognizance of officials and party members regarding the intricate security risks and potential benefits of carbon credits. As a result, in order to prevent economic disadvantages or negative impacts on local security and order, vigilance and proactive prevention will be prioritized when collaborating and working with partners.

Adhere to the Government's Decree and the Decision of the Hoa Binh Provincial People's Committee on the promulgation of the regulations for the management and use of non-refundable aid that is not part of official development assistance (ODA) from foreign agencies, organizations, and individuals for Vietnam in Hoa Bình Province.

Signing cooperation agreements, commitments, or memoranda with foreign parties in order to receive non-refundable aid that is not part of ODA from foreign agencies, organizations, or individuals is prohibited. To evaluate, approve, and implement the funding programs and projects of foreign agencies, organizations, and individuals, only utilize the documents and materials specified in Article 8 of the Government's Decree, specifically the program, project, and non-project documents.

According to the Vietnam Administration of Forestry, the country planted about 250,000 hectares of forest last year, surpassing the yearly plan by 2%.The forest coverage rate was 42.02%, matching the target. Total revenue from all forest environment services reached more than 169 million USD.