Policy suggestions on agricultural-based carbon credits

In the Draft Political Report of the 13th Central Committee of the Party at the 14th National Congress of the Party, environmental protection and climate change response are identified as one of the key pillars of the country's development strategy for the new period.

The Draft meticulously outlines the key development goals and indicators for the 2026-2030 period. Significantly, this includes the target of reducing greenhouse gas emissions by 8-9% when compared to the conventional development trajectory. This is a vital step toward fulfilling Vietnam’s national commitment to achieve net-zero emissions by 2050.

In parallel, the content presented in Section IX, titled 'Efficient Management and Utilization of Resources, Environmental Protection, and Proactive Adaptation to Climate Change,' underscores the imperative to refine institutional frameworks and elevate the capacity for environmental monitoring and protection. It also underlines the urgency for advancing the green transition and the circular economy, while ensuring a balanced approach between robust economic growth and minimizing adverse environmental impacts.

These fundamental policy directions lay the groundwork, enabling localities, economic sectors, enterprises, and local communities to engage more comprehensively in the pathway towards emission reduction, particularly across high-emission sectors such as agriculture, industry, and transportation.

The clear establishment of these goals for the 2026-2030 phase unequivocally signals Vietnam's resolve to undergo a comprehensive transformation toward a sustainable and climate-resilient development paradigm. Simultaneously, this prepares the groundwork necessary for the country to effectively engage in the global carbon market - a universally recognized and indispensable global trend.

In connection with the Draft above, Mr. Nguyen Trong Thanh, Director of the Phu Luong Agricultural Service Cooperative (located in Bac Tien Hung commune, Hung Yen province), noted that the prominent inclusion of the greenhouse gas emission reduction target in the Draft is a positive indicator. This reflects the deep commitment and significant attention of the Party and the State to fostering green agriculture and a low-carbon economy.

Mr. Thanh further noted that the agricultural sector currently accounts for approximately 116 million tons of CO2 emissions, representing more than 25% of the nation's total emissions, with rice cultivation and animal husbandry as the two primary sources. He asserted, "To ensure the successful realization of the net-zero emission commitment by 2050, transitioning to a low-carbon rice production model is not merely an emerging trend, but has now evolved into an essential, non-negotiable requirement."

At Phu Luong Agricultural Service Cooperative, emission-reduction farming methods have been implemented since 2017, including managing water use more effectively, reducing chemical fertilizer use, using high-quality varieties, adopting mechanization, and digitizing cultivation processes. The Cooperative is aiming to expand its production area to qualify for selling carbon credits - a direction that helps increase production value while simultaneously creating motivation for farmers to commit long-term to green agriculture.

Drawing on these practical realities, the Director of the Phu Luong Agricultural Service Cooperative proposed that the authorized agencies intensify outreach, organize specialized training courses, and facilitate the sharing of knowledge and experience on carbon credits among enterprises and individual farmers.

Simultaneously, it is imperative to construct a robust, transparent, and independent Monitoring, Reporting, and Verification (MRV) system at the national scale. This system must be designed to ensure consistent application across ministries, sectoral agencies, and high-emission enterprises.

Crucially, it is recommended that Section IX of the Draft be augmented with the provision: "Establishing policy mechanisms to facilitate the implementation of carbon credits for communities residing in core rice cultivation zones, as well as areas encompassing protection forests and headwater forests."

Mr. Thanh concluded that when carbon credits are successfully monetized into tangible economic value and local populations are direct beneficiaries, this will provide substantial incentives for them to adopt environmentally sound cultivation practices and protect forests and natural resources. Furthermore, this approach is a critical means of galvanizing widespread community involvement, a decisive component of the nation’s overall emissions-reduction trajectory.