Carbon Credit Trading in Agricultural Production: The First Signals

Vietnamese farmers are receiving payments for sustainable rice cultivation practices that reduce emissions. While modest, these "bonuses" from carbon credit businesses signify the emergence of a carbon credit market in agriculture. In An Giang Province, a pilot program saw four farmers receive 14.3 million VND for reducing greenhouse gas emissions on 8.49 hectares during the Autumn-Winter 2024 rice crop. This model, implemented in collaboration with Netzero Carbon JSC and BSB Nanotech JSC, also reduced production costs and increased profits for participating farmers. Dak Lak Province also witnessed its first carbon emission reduction sales from rice, with farmers earning 8.3 million VND for nearly 17 tons of reductions. This pilot project, also involving Net Zero Carbon JSC, demonstrated both economic and environmental benefits, with higher yields and lower investment costs alongside significant emission reductions. These initial successes suggest the potential for scaling up these programs. While not yet officially recognized as carbon credits, these payments incentivize farmers to adopt sustainable practices, paving the way for future binding contracts and broader participation in the global carbon market.