Contributing to sustainable agricultural development and decarbonization across Vietnam
Green Carbon Co., Ltd. (CEO: Jun Okita, hereinafter referred to as Green Carbon), which operates a nature-based carbon credit creation and sales business, will release the “AWD Project Report: Vietnam 2024” (hereinafter referred to as “this Report”), which summarizes the methane gas reduction and carbon credit creation project (hereinafter referred to as “this Project”) carried out in six areas in northern Vietnam in 2024, to consumers, local companies and research institutions investing in projects in Vietnam.
This project aims to reduce methane gas emissions and water usage, improve yields, and increase farmers’ profits by introducing AWDs to targeted rice fields. Green Carbon launched this project in six areas in northern Vietnam in 2024. We have decided to publish this report summarizing the results throughout the year so that our efforts in Vietnam in the first year can be utilized more meaningfully. We will utilize the results of this project to expand the project throughout Vietnam and contribute to sustainable agricultural development and decarbonization.
Click here to download the “AWD Project Report: Vietnam 2024”
◆The background behind the launch of this project
Vietnam is the world’s fifth largest rice producer, producing 26.5 million tons of rice in 2024 (5% of the world’s total production)*2, and rice is one of the important crops in Vietnam’s agricultural sector.
Vietnam’s greenhouse gas (GHG) emissions exceed 300 million tons per year, making it the 17th largest GHG emitter in the world.*3 Of the country’s total emissions, the agricultural sector accounts for approximately 15%*4, of which rice cultivation accounts for approximately 30%, or approximately 21.3 million tons*5.
For this reason, reducing GHG emissions from rice cultivation has become an urgent issue in Vietnam, where farmers report low income from agriculture due to limited land area and management difficulties.
In light of the above, Green Carbon has launched a project to generate carbon credits by reducing methane emissions from rice paddies in six areas in northern Vietnam, including Nghe An, Nam Dinh, Vinh Phuc, Thanh Hoa, Hung Yen, and Hai Duong, in 2024. AWD is a water management method that introduces multiple dry periods throughout the growing season to expose the soil to air. By limiting the activity of methanogenic bacteria that thrive in waterlogged conditions, it can effectively reduce methane emissions while maintaining rice production.
Currently, Green Carbon is working with local stakeholders to ensure sustainable project operations. Working with the Vietnam National University of Agriculture (VNUA*6) and the Institute of Agricultural Sciences of North Central Vietnam (ASINCV*7), which provide technical support, Green Carbon is identifying project areas, collecting gas samples, and analyzing greenhouse gas emission reductions. This project not only generates carbon credits through AWD, but also provides farmers with expert advice on appropriate fertilization, which has a positive impact on quality and yield. The support from these collaborative partners has greatly contributed to the success of this project.
◆Summary of project results
This project started in January 2024 (first crop) in Nghe An Province in northern Vietnam, and has since expanded to six areas in June of the same year (second crop), including Nghe An, Nam Dinh, Vinh Phuc, Thanh Hoa, Hung Yen, and Hai Duong.
In Nghe An province, methane emissions were reduced by approximately 11 tons per hectare throughout the year (GHG equivalent). This is equivalent to an emission reduction of approximately 55% compared to conventional cultivation methods. In addition, rice yields increased by an average of 0.66 tons per hectare (approximately 5.5% increase compared to conventional cultivation methods). Similar results of reduced methane emissions and increased yields have been confirmed in other provinces. These increased yields have led to a 9% increase in farmers’ annual income per hectare. For an overview of the project’s results, please refer to this report.
*See this report: Sampling of methane gas reduction
◆Future Outlook
Building on its achievements in Vietnam in 2024, Green Carbon is promoting further project expansion. It plans to introduce AWD to a total of 24 provinces and approximately 750,000 hectares of rice paddies in 2030. The Vietnamese government aims to introduce AWD to approximately 1.5 million hectares by 2030, and the estimated cumulative GHG reductions from 2024 to 2030 are expected to reach 21 million tons.
Green Carbon will collaborate with VNUA (Vietnam National University of Agriculture), ASINCV (Agricultural Science Institute of Northern Central Vietnam), ASISOV (Agricultural Science Institute for Southern Coastal Central of Vietnam), CLRRI (Cuu Long Delta Rice Research Institute) with whom it has already signed MOUs, to expand the most suitable projects in each region.
We will also work with the Vietnamese government and international organizations to lead agricultural innovation. Through the Vietnam Food Innovation Hub (FIH), led by the World Economic Forum, in which Green Carbon participates, and the One Million Hectares Project led by the Vietnamese government, we will work to decarbonize rice farming while improving rice yields and quality.
*See this report: Negotiations with local state governments
*1: Intermittent irrigation
Intermittent irrigation (AWD) is a method in which water is flooded and allowed to dry naturally every few days, based on the water level of the paddy field. Compared to continuous flooding, intermittent irrigation (AWD) can reduce water usage and contribute to the conservation of water resources.
*2: Vietnamese rice production
U.S. Department of Agriculture
https://www.fas.usda.gov/data/production/commodity/0422110
*3: Vietnam’s GHG emissions
Our World in Data
https://ourworldindata.org/co2-and-greenhouse-gas-emissions#co2-and-greenhouse-gas-emissions-country-profiles
*4: GHG emissions in the agricultural sector
Our World in Data
https://ourworldindata.org/emissions-by-sector
*5: GHG emissions from rice cultivation
World Bank
https://documents1.worldbank.org/curated/en/799171516784660912/pdf/122933-v1-WP-P153343-PUBLIC-Vietnam-summary-ENG.pdf
*6: Vietnam National University of Agriculture (VNUA)
Vietnam National University of Agriculture is a national university of Vietnam established in 1956. Located in Hanoi, the capital of Vietnam, it plays a central role in human resource development and scientific research in agriculture and rural development.
https://eng.vnua.edu.vn
*7: Agriculture Science Institute of Northern Central Vietnam (ASINCV)
Founded in 2016 with the goal of developing agriculture in the Central and North Central regions of Vietnam, the institute primarily conducts research on crop science and farming systems with a focus on socio-economic development.
http://asincv.gov.vn
◆Introduction to Green Carbon, Inc.
Green Carbon operates with the vision of “Saving the Earth with the Power of Life,” providing comprehensive support from carbon credit creation, registration, to sales. Additionally, we are involved in agriculture-related businesses, research and development, ESG consulting, among others. Our main focus is on generation carbon credits through methane gas reduction in rice paddies, where we have obtained certification for J-Credits, the first and largest in Japan (approximately 6,220 tons), and plan to expand to around 50,000 hectares in the fiscal year 2024. We also offer a service called “Agreen” that integrates credit registration, application, and sales into one platform, simplifying procedures such as application registration and document preparation, thus reducing the workload for credit creators.
◆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, 2024
Business ：Carbon Credit Generation and Sales Business, Agriculture-related Business