B2.3.2. REDD+ benefit sharing mechanisms
As part of the implementation of the National REDD+ Action Program (NRAP) (2017), the Ministry of Agriculture and Rural Development (MARD, now the Ministry of Agriculture and Environment) issued Decision No. 5399/2015/QD-BNN-TCLN regulating pilot sharing of REDD+ benefits within the framework of the UN-REDD Viet Nam Phase II Programme.[1] This applied to the six pilot provinces of the Phase II Program and intended to provide practical basis for the development of a REDD+ benefit distribution mechanism and policies nationwide. Article 6 of the Decision sets out principles of benefit distribution: performance-based; equitable; transparency and accountability; efficiency and effectiveness; flexible; participatory; and that REDD+ benefits do not replace other lawful benefits to which entities and individuals participating in REDD+ are entitled in accordance with law. The Decision also establishes requirements and eligible activities, identifies direct and indirect beneficiaries, sets out responsibilities for benefit distribution, specifies criteria to be applied and procedures for monitoring and evaluation, and explains the methodologies to calculate and estimate the level of benefits/incentives.
The NRAP (2017)[2] specifies activities to set up and implement financial management mechanisms for REDD+. These include: research on an appropriate incentive delivery system/benefit distribution system and carbon rights for REDD+, in accordance with relevant incentive mechanisms and regulations, involving assessment of current and potential incentive mechanisms for forest protection and development; issuing a regulation on forest carbon rights; and finalisation of a REDD+ benefit distribution system, mainstreamed into Viet Nam's “forest incentives landscape”.
The Government assigned the responsibility of receiving revenue from REDD+ to the Viet Nam Forest Protection and Development Fund (VNFF), which was established in 2008. VNFF receives revenue from REDD+ on the basis of the emission reduction transfer agreements signed between Viet Nam and international partners, and coordinates funds to the Provincial VNFFs (after deduction of fund management costs and program operating costs) based on the emission reduction results of each province. Provincial VNFFs (after deducting their fund management costs) will then pay beneficiaries.
At the subnational level, the FCPF Emission Reductions Program (ERP) in the North Central Region has designed and agreed a Benefit Sharing Plan[3] with stakeholders at the national, provincial, and the commune level, which was published in March 2023. The Plan aims to ensure that carbon benefits (both monetary and non-monetary) are shared equitably and effectively with all relevant stakeholders who will have a direct impact on generation of emission reductions in the Program area, including forest-dependent communities. The principles of the FCPF ERP benefit sharing approach are outlined in the Government decree No. 107/2022/ND-CP on the pilot transfer of emission reduction results and financial management of GHG ERPA in the North Central provinces (Article 8). MARD also issued Decision No. 641/QD-BNN-TCLN on Issuing a Benefit Sharing Plan for ERPA in the North Central provinces.[4]
The proposed benefit sharing plan for the LEAF Program has been developed in accordance with Article 70 of Government Decree No. 156/2018/ND-CP which details the implementation of several articles of the Law on Forestry.[5] In addition, comments from relevant ministries, branches and localities, as well as feedback from national and local level consultation workshops are informing the development of the plan.
[1] Decision No. 5399/2015/QD-BNN-TCLN regulating pilot sharing of REDD+ benefits within the framework of the UN-REDD Viet Nam Phase II Programme
[2] NRAP (2017), Decision No 419/QD-TTg dated 5/4/2017
[3] MARD (2023) Benefit Sharing Plan for the Emission Reductions Program in the North Central Region of Vietnam: https://documents1.worldbank.org/curated/en/099084503102316232/pdf/P1626050c673020320adf60bbaaf0f53be4.pdf
[4] Decision No. 641/QD-BNN-TCLN dated February 21, 2023 on Issuing a Benefit Sharing Plan for ERPA in the North Central provinces.
[5] Decree No. 156/2018/ND-CP