Supporting Vietnam’s Growing Carbon Market with AWD Technology
Green Carbon Inc. (CEO: Jun Okita, hereafter “Green Carbon”), a pioneer in the creation and sale of nature-based carbon credits, was honored to participate in the seminar titled “Promoting Business Engagement in the Joint Crediting Mechanism (JCM) Towards Readiness for Vietnam’s Carbon Market,” held on July 22, 2025, in Hanoi. The event was co-hosted by the Ministry of Agriculture and Environment of Vietnam and the Ministry of the Environment of Japan, and attended by senior officials and industry leaders from both countries.
The seminar provided a key platform to strengthen bilateral cooperation under the JCM※1 framework, which promotes investments and technology transfer for low-carbon development. It also offered an opportunity to share project implementation experiences, highlight potential initiatives, and discuss strategic directions for integrating Vietnam’s carbon market with regional and global system.
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◆Event Overview
The seminar was attended by officials from the Ministry of Agriculture and Rural Development (MARD) of Vietnam, the Ministry of the Environment of Japan, and companies from sectors requiring emissions reductions, such as agriculture, livestock, energy, and transportation. Numerous executives from companies and government agencies involved in JCM projects were also in attendance.
Title: Forum on Promoting Business Engagement in the Joint Crediting Mechanism (JCM) Towards Readiness for Vietnam’s Carbon Market
Date & Time: Tuesday, July 22, 2025
Hosted by:
・The Ministry of Natural Resources and Environment
・Mr. Naoki Ito, Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
| ◆Government agencies, companies, and presentation content |
|---|
| Carbon Market Division, Ministry of Agriculture and Environment (MAE), Vietnam： Overview of Vietnam’s carbon market regulations and cooperation for GHG mitigation |
| Financial Market Legal Division, Ministry of Finance (MOF), Vietnam：Establishment and regulation of Vietnam’s carbon exchange |
| Global Environmental Bureau, the Ministry of the Environment (MOEJ), Japan： JCM implementation status, methodology updates, and sectoral opportunities |
| erex Co., Ltd.：Operations of Vietnam’s first biomass power plant |
| Green Carbon Inc.：Carbon credit generation project through AWD in Vietnam |
| JOGMEC：CCS project efforts and JCM expectations |
| VinGroup JSC：VinGroup’s carbon market strategy |
| Vietnam National Industry – Energy Group： Promoting energy transition towards green production and sustainable development |
| A6IP Center：Introducing the JCM credit procedures and authorization |
| JFE Engineering Corporation： Introduction of T&J Green Energy, the first JCM supported WtE project in Vietnam |
| Shizen Energy Inc. ：Introduction of the first wind farm project approval in Vietnam |
| Idemitsu Vietnam Co., Ltd.：Green hydrogen production demonstration |
◆Background for Participation in This Event
Green Carbon is a company focused on creating nature-based carbon credits, primarily in Southeast Asia. We develop a wide range of projects, including forest preservation, paddy fields, mangrove planting, cow burp reduction, and biochar initiatives. We create projects that are tailored to the specific natural resources of each region, and we use satellite data for site selection and monitoring, ensuring efficient and transparent project management.
In Vietnam, Green Carbon is particularly focused on reducing methane emissions from rice cultivation using AWD (Alternate Wetting and Drying)※2 technology. Since establishing our local office in August 2024, we have built strong partnerships across the country, working with authorities in 22 provinces.
In 2013, Vietnam and Japan partnered to participate in the Joint Crediting Mechanism (JCM). Since then, Vietnam has made significant progress in low-carbon development. Fifteen methodologies have been approved, and 14 projects have been officially registered under this mechanism. With over $35 million in financial support from the Japanese government, approximately 35,000 tons of carbon credits have been issued. This cooperation has been extended until 2030, with Japan continuing to expand climate change measures for Vietnamese companies in sectors such as agriculture, energy, transportation, livestock, and CCS/CCUS.
Following this, Green Carbon is aiming for the approval of an agriculture-based JCM methodology in Vietnam, similar to our success in the Philippines.
In early February 2025, the JCM methodology for “Methane Emission Reduction by Changing Water Management in Rice Paddies (AWD Introduction)” was approved between Japan and the Philippines. Following this approval, Green Carbon partnered with Philippine provincial ministries to develop a large number of JCM projects. Almost all of these projects have been reserved and sold to major corporations for investment, demonstrating a high demand from large companies for projects that can generate a stable, large volume of carbon credits through JCM.
It is against this backdrop that Green Carbon participated in this event as a representative of the agricultural sector to promote the approval of an agriculture-based JCM methodology in Vietnam.
◆Details of the Event and Green Carbon’s Presentation
At this event, it was emphasized that Vietnam is rapidly preparing to launch its domestic carbon credit market, with a full-scale launch scheduled for 2029 following the conclusion of a pilot phase in 2028. During this preparation period, Vietnam’s Ministry of Finance will finalize regulations on carbon credit pricing, trading mechanisms, and the products to be handled in the market.
Additionally, companies may be able to offset up to 30% of their emissions with carbon credits, which is expected to significantly increase demand for carbon credit creation projects in Vietnam. Recent legal developments, specifically Decision 232/QĐ-TTg and Decree 119/2025/NĐ-CP, provide a robust foundation for both domestic and international carbon credit trading. This demonstrates Vietnam’s commitment to aligning its standards with the global carbon market.
Based on this roadmap, the JCM is expected to continue playing a crucial role in developing Vietnam’s carbon market and implementing the Emissions Trading System (ETS) planned for 2029. This will ensure the country’s market operates in alignment with international standards.
Against this backdrop, Green Carbon’s Asia Regional Director, Long Borareaksmey, presented our flagship project that applies AWD (Alternate Wetting and Drying) irrigation technology to reduce methane emissions from rice cultivation. AWD has been shown to reduce methane emissions by up to 50% compared to traditional flooded cultivation, while also increasing rice yields by about 5% and lowering production costs. This could lead to an estimated income increase of $150 per hectare annually for farmers.
◆Future Outlook
Green Carbon’s participation in this event reaffirms its commitment to promoting transparent and science-based climate solutions that align with Vietnam’s Nationally Determined Contributions (NDCs) and the global decarbonization agenda. The forum was a landmark opportunity to align Vietnam’s carbon market preparations with international frameworks, including Japan’s GX-ETS (Green Transformation Emission Trading System) which is set to begin in 2026.
Green Carbon has signed MOUs with agricultural research institutions in northern, central, and southern Vietnam to monitor methane emissions and develop sustainable, region-specific farming practices. We are also collaborating with the Vietnam National University of Agriculture (VNUA) and the Agricultural Genetics Institute (AGI) to jointly demonstrate soil carbon sequestration by promoting projects that involve intercropping legumes, such as soybeans, during fallow periods.
As Vietnam moves toward launching its domestic carbon market, Green Carbon will continue to support farmers, businesses, and policymakers with practical solutions, robust methodologies, and transparent monitoring to ensure measurable and equitable climate benefits.
※1：JCM (Joint Crediting Mechanism)
The JCM is a system where Japan contributes to greenhouse gas emission reductions in partner countries through the diffusion of its leading decarbonization technologies. The resulting reductions are then used to help both countries achieve their emission reduction targets.
※2：Alternate Wetting and Drying (AWD)
Alternate Wetting and Drying (AWD) is a method that involves repeatedly flooding and naturally drying paddy fields every few days, using the water level as a guide. Compared to continuous flooding, AWD can reduce water usage, contributing to water resource conservation.
Green Carbon, Inc.
Representative : CEO Jun Okita
Address : 9F Hanzomon PREX North, 2 Chome-3-2 Kojimachi, Chiyoda City, Tokyo, Japan 102-0083
Founded : December 2019
Business Operations : Creation and Selling of Carbon Credits, Agricultural Business, Environmental Business, Businesses related to Environmental Consulting, and others.
URL : https://green-carbon.co.jp/
◆GREEN CARBON JAPAN VIETNAM COMPANY LIMITED
Abbreviation ：GREEN CARBON JAPAN VIETNAM CO,. LTD
Representative ：Jun Okita, CEO
Location ：10th Floor, The Nexus Building, 34-3B Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Establishment ：August in 2024
Business ：Carbon credit creation and sales business, agriculture-related business
About Green Carbon
Green Carbon operates with the vision of “Saving the Earth with the Power of Life,” providing comprehensive support from carbon credit creation and registration to sales. Additionally, we are involved in agriculture-related businesses, research and development, and ESG consulting. We are actively generating carbon credits through methane gas reduction in rice paddies, with Japan’s first and largest J-Credit certification (approx. 6,220 tons) and plans to expand to 50,000 hectares in fiscal year 2024. Our Agreen platform simplifies credit registration and management for credit creators.