Erpa Agreements

The ER buffer serves as a tool to manage certain risks during the implementation of the ER program, including the magnitude of the uncertainties associated with estimating THE ERs that will be generated under an ERPA program over the life of the ERPA and the risk of inversion. Prior to any transfer of ERs under the ERPA and in addition to the amount of contractual ERs to be transferred to the purchaser, a certain amount of buffer ERs generated and verified under the ER program during the previous reference period is transferred for each risk category covered and paid into the ER program buffer. In the event that a covered risk occurs during the duration of the ERPA, an amount of these depreciable ERs, corresponding to the amount of contractual ERs affected by such a risk event, is cancelled to ensure that contractual and already transferred ERs are not affected by such a risk event. The operating procedures for the ER buffer are specified in the “er” guidelines, which will be adopted by the FCPF Carbon Fund following the review and feedback of a monitoring group made up of representatives of the FCPF Carbon Fund, REDD countries and observers. With this ERPA, Vietnam is expected to receive $51.5 million for its efforts to reduce 10.3 million tonnes of carbon dioxide emissions from six provinces in the Central Northern Region (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue) through more sustainable forest measures and policies. Once the vendor has finalized its Emissions Reduction Program (ERPD) document, its ERPD has been submitted to the FCPF Carbon Fund and the FCPF Carbon Fund has decided to select the ER program in its portfolio of ER programs, the vendor (. B for example, a REDD country) and the buyer (forest carbon partnership Facility Carbon Fund) will negotiate the terms of an ERPA. Once these ERPA negotiations have been concluded and an ERPA has been signed, the terms and conditions of sale will be added to the ERPA as a reference and will therefore be an integral part of the ERPA itself. The terms and conditions of sale clearly show that the emission reductions agreed under the ERPA FCPF and all the underlying tonnes of CO2e can only be used or claimed once.

Therefore, sellers (for example. B REDD countries) do not have the right to sell, resell or otherwise use contracted ERs after being transferred to the carbon fund and paid to do so.