Low-emission cultivation: Key to unlocking Viet Nam's carbon credit market

The path to strengthening Viet Nam's agricultural brand

According to the Ministry of Agriculture and Environment, amid increasingly complex situation of climate change, unpredictable, and negatively impacts all aspects of socio-economic life, the agricultural sector in general, and the cultivation sector in particular, face enormous challenges. This situation necessitates strategic guidance and specific, timely actions to ensure sustainable development, effective adaptation to climate change, and the reduction of greenhouse gas emissions in line with international commitments.

Based on national greenhouse gas inventory data for 2020, Viet Nam’s total emissions reached approximately 454.6 million tonnes of CO2 equivalent, nearly double the figure from 2010. Of this, agriculture accounts for about 116.51 million tonnes, with cultivation alone (primarily from rice farming, certain key crops, and the burning of agricultural byproducts in fields) contributing up to 80% of the sector's total emissions.

Currently, alongside rice, many other crop groups such as corn, cassava, soybean, vegetables, and fruit trees have the potential to implement low-emission farming solutions. These solutions aim to decrease fertilizer use, enhance carbon sequestration, improve soil health, conserve resources, and move toward sustainable production. However, these models have remained largely at the pilot and fragmented stage, lacking a comprehensive, nationally directed and supported program.

Meanwhile, major global agricultural markets are increasingly tightening requirements regarding carbon emissions, sustainability certifications, traceability, and environmental protection. Should Viet Nam delay the implementation of low-emission production programs, its agricultural products will face disadvantages in export and a decline in competitiveness, especially amid deep economic integration and the execution of new-generation free trade agreements.

In reality, low-emission farming is not only a crucial requirement in the context of climate change but also brings tangible benefits to farmers, businesses, and the nation. Practices such as Alternate Wetting and Drying (AWD), integrated nutrient management, organic farming, precision agriculture, or climate-smart agriculture significantly reduce the use of chemical fertilizers, pesticides, and irrigation water, thereby lowering production costs and increasing farmer profits. Concurrently, they improve soil health, protect biodiversity, reduce environmental pollution, and enhance agricultural product quality.

In the long term, developing cultivation toward low emissions is the path to building the image of a Vietnamese agriculture that is environmentally responsible, technologically advanced, and capable of deep integration into the global value chain. This is also a vital foundation for Viet Nam to access both voluntary and mandatory carbon credit markets, enabling the formation of carbon credit projects in agriculture, generating new financial resources for farmers and businesses, and promoting the green transition of the entire sector.

However, achieving this requires unified leadership from state management agencies through a comprehensive, long-term program that synchronously integrates solutions spanning technical, policy, financial, scientific-technological, training, communication, and international cooperation aspects. The program must clearly identify key crops with emission reduction potential, establish a set of criteria and technical guidelines, and move toward setting up a transparent and effective emission monitoring and assessment mechanism.

Prerequisites for developing cultivation-based carbon credits

The Project clearly states that the main source of emissions in cultivation originates from flooded rice fields and the unprocessed incorporation of straw, accounting for nearly 57% of methane (CH 4 ) emissions. Furthermore, inorganic fertilizers, particularly excessive and uncontrolled nitrogen fertilizer application, contribute to N2O emissions from the soil. The habit of burning straw after harvest not only increases CO2 emissions but also produces many other toxic gases. Another portion of emissions comes from the disposal of used agricultural material packaging and the fuel used for extraction and production in farming.

Traditional farming models in Viet Nam, especially for rice, still rely heavily on wasteful irrigation, chemical fertilizers, and improperly used pesticides. Unsustainable land management leads to low resource efficiency, while small-scale production and limited technical proficiency result in rapid soil degradation.

Farmers bear increasingly high input costs, face unsustainable production, unstable product quality, declining soil health, and consequently, volatile incomes. The greater consequence is the rise in greenhouse gas emissions, coupled with limited awareness of low-emission farming among both producers and management staff, directly affecting Viet Nam’s internationally committed emission reduction targets.

Despite numerous efforts, the low-emission farming system in cultivation still faces a range of difficulties. Currently, there is no comprehensive national program specifically for cultivation, unlike those for energy or transportation. Knowledge and awareness regarding emission reduction, especially methane, remain limited among both the farming community and management personnel.

Some rice pilot models have been deployed, but research and technical solutions for other upland crops are scarce. The Measurement – Reporting – Verification (MRV) system is incomplete, data is lacking, and mostly qualitative. The financial mechanisms supporting the transition are unclear, and farmers lack capital and incentives to change techniques. Additionally, access to carbon credit markets from cultivation is limited due to a lack of specific guidance and support from intermediary organizations.

Nevertheless, the potential for emission reduction in cultivation remains enormous. Besides rice, key crops such as cassava, sugarcane, vegetables, and fruit trees can all adopt resource-saving solutions, reduce chemical fertilizers, increase organic fertilizer use, recycle byproducts, and apply new technologies.

For rice, Alternate Wetting and Drying can be applied, along with reducing nitrogen application, using suitable varieties, utilizing rice straw, and moving toward organic farming. For cassava, sugarcane, or fruit trees, measures like crop rotation, replanting, increased soil cover, water conservation, using biochar, and recycling byproducts have all shown positive effects.

Looking ahead, promoting a market for certified low-emission agricultural products and preparing the conditions for developing carbon credits from cultivation will open opportunities for Viet Nam's agricultural sector to simultaneously ensure farmer livelihoods and affirm its active role in the global fight against climate change.

Building the "low emission" label

The Project sets a general goal of synchronously implementing solutions to promote the transformation of the cultivation production system toward low emissions, effective adaptation to climate change, while enhancing production efficiency and improving farmer livelihoods.

The Project aims to build a highly competitive cultivation sector that ensures national food security and progressively forms an ecological, modern agriculture with resilience against severe climate impacts and compliance with Viet Nam's international commitments in the Nationally Determined Contribution (NDC).

By 2035, the cultivation sector will contribute to reducing the total volume of greenhouse gas emissions by a minimum of 15% compared to the 2020 baseline year. Concurrently, the sector will develop and promote the "Low Emission" label for cultivation products, creating a foundation for increasing value and affirming the brand of Vietnamese agricultural products in the market.

Every province and city strives to implement at least one to two scalable low-emission production models and to pilot about 15 farming models aimed at developing carbon credits that meet the requirements of international organizations.

The Project sets targets for issuing at least 5 technical packages applicable to key crops, as well as establishing a cultivation emission database that connects with the National Registry System. Training and capacity building will be widely deployed, with at least 3,000 grassroots technical staff, extension workers, farmers, and businesses being equipped with knowledge on techniques, policies, and emission measurement tools.

Concurrently, 5 sets of communication materials will be developed, helping to raise awareness and change farmer production behaviors toward low emissions.

By 2050, Viet Nam’s cultivation sector is envisioned as low-emission, ecological, and modern, becoming one of the pillars of the green transition in agriculture. Production activities will be organized in circular value chains, applying digital and smart agriculture technologies, efficiently utilizing land, water, and input materials. Beyond merely controlling, the cultivation sector will strive to absorb and offset emissions, aiming for 100% of the key crop area to apply sustainable farming technical procedures.

Furthermore, a digitalized emission data system will be completed, synchronously connected with the national monitoring mechanism, while the "Low Emission" label becomes a common standard for Vietnamese agricultural products. With these advances, Viet Nam aims to become a pioneer nation in the region for developing climate-responsible agricultural products, establishing a green competitive advantage in the international market, and making a practical contribution to the Net Zero emission target committed at COP26.

The Ministry of Agriculture and Environment assigns the Department of Crop Production and Plant Protection to take the lead in guiding the Project's implementation in stages, organizing and coordinating the deployment of the Project's contents, and inspecting, monitoring, and evaluating the results nationwide.

The Department is also tasked with summarizing needs, developing a list of tasks and component projects, and proposing resource allocation for implementation. It will lead coordination with internal and external units to build and operate the cultivation emission database, ensuring synchronous connection with the National Registry System.

Flexible crop structure transformation

One of the Project's central tasks is to transform the crop structure flexibly, suitable to the ecological characteristics and farming proficiency of each region. Viet Nam will continue to expand the area of high-value perennial crops, which simultaneously increase production efficiency and contribute to carbon sequestration. In areas where rice cultivation is less efficient, the transition to upland crops or a combination of rice and aquaculture will be encouraged. Models featuring one rice crop and one upland crop will also be promoted to improve soil health, increase farmer income, and reduce emissions.

Alongside this, the Project mandates the development and application of low-emission technical packages in cultivation production. This begins with reviewing and assessing the current state of greenhouse gas emissions from key crops, thereby refining technical packages suitable for each ecological region.

The technical solutions include water-saving irrigation management in rice production (Alternate Wetting and Drying), the “1 Must, 5 Reductions”, “3 Reductions, 3 Increases” models, and the System of Rice Intensification (SRI); rational nutrient management with organic, microbial, and slow-release fertilizers; reducing chemical pesticide use, replacing them with biological and organic farming methods; conservation tillage, rational crop rotation, and efficient utilization of agricultural byproducts.

Notably, digital technology will be integrated into production with smart sensors for regulating water, fertilization, spraying, and soil analysis, combined with measures for soil carbon sequestration, biochar production, and the use of Azolla, among others. These advances will be compiled into technical guidance materials by crop group and integrated into the agricultural extension system.

The Project also clearly defines the task of capacity building and perception change. Communication, training, and capacity-building programs will be implemented for management officials, extension workers, core farmers, and businesses, with content on low-emission techniques, the MRV system, carbon credits, and circular value chains. Standardized document sets, including handbooks, leaflets, infographics, and videos, will be compiled to suit each region and target group.

Communication will be broadened through the press, social networks, television, trade fairs, and exhibitions, while emission reduction content will be integrated into vocational training, extension programs, and technical transfer. Viet Nam will strengthen cooperation with international organizations such as FAO, WB, GIZ, UNDP, IFAD, and JICA to provide technical assistance, deploy models, build MRV capacity, and facilitate carbon credit connections.

The Project aims to connect the market for low-emission products. Production–consumption linkage chains will be organized, connecting raw material areas with purchasing, distribution, and export businesses. A certification system for low-emission products will be established, supporting traceability and brand building.

Pilot labeling will be conducted for several key commodities like rice, vegetables, fruits, coffee, and pepper, before being expanded nationwide. Concurrently, a consumption market system for low-emission agricultural products will be formed through green consumption communication programs, encouraging the selection of environmentally friendly products.

To implement the Project, the Ministry of Agriculture and Environment assigns the Agriculture and Environment Newspaper to build a specialized page/section for communicating related Project content, organize communication forums on low-emission cultivation, launch communication campaigns for crop groups with low-emission transition potential, and develop communication learning materials to popularize low-emission farming procedures and raise awareness about low-emission cultivation.