Rubber industry takes proactive steps to participate in carbon market

Proactively transitioning in line with the State's major orientations

Although rubber is not yet among the industries required to conduct greenhouse gas (GHG) inventories under the Law on Environmental Protection, many enterprises have proactively implemented this requirement on a voluntary basis, viewing it as essential preparation to be ready for participation in the carbon market once the operational mechanism is officially completed.

In Binh Phuoc, Binh Long Rubber Co., Ltd. is one of the earliest adopters of this trend. The company is focusing on developing emission-reducing production models and technological innovation programs in crop production and processing. The goal is to save energy, reduce environmental pollution, and enhance the carbon sequestration capacity of rubber forests.

Notably, Binh Long Rubber has begun conducting comprehensive GHG inventories across all its production and business activities, marking an important step in preparing to participate in the future carbon market. The company also aims to develop an emission management system according to ISO standards, in line with the national goal of achieving net-zero emissions by 2050.

According to Mr. Bui Dinh Bay, Deputy General Director of Binh Long Rubber Co., Ltd., conducting GHG emission inventories helps enterprises fully identify their emission sources, thereby adopting appropriate management solutions while creating a data foundation to meet increasingly stringent environmental transparency requirements of export markets.

At its plantations, plot sanitation, solid waste collection, and wastewater treatment are all carried out strictly. Wastewater from production is passed through settling pits to recover any remaining latex before entering the central treatment system, contributing to reducing environmental pollution and saving resources. These solutions help the company meet environmental standards and align with the trend of low-carbon production.

Notably, the enterprise is also gradually studying the feasibility of developing a carbon credit project from rubber forests. The company has conducted in-depth research, including analyzing CO₂ absorption capacity, building emission and sequestration databases, and standardizing procedures to meet credit standards on the international voluntary carbon market as well as the future domestic market. Company leaders identified that early, proactive preparation will shorten the readiness phase and create an advantage once the domestic market officially comes into operation.

From sustainable planted forests to transparent data platforms

In Dong Nai, Dong Nai Rubber Corporation is also implementing a green transition strongly based on three pillars, including sustainable forest management, emission inventories, and digital transformation.

Across the rubber plots of Binh Loc Plantation, workers continue their daily latex tapping routines. Rubber tapping has been a stable livelihood for many people for decades, while forest management and production systems have undergone fundamental changes through technological applications.

Currently, Dong Nai Rubber Corporation manages more than 33,000 ha of rubber forests. The entire area has been certified for sustainable forest management under the VFCS/PEFC-FM standard. This serves as a crucial foundation for ensuring transparency in forest management, product traceability, and compliance with international market requirements on anti-deforestation.

Building on the foundation of sustainable forest management, the company is conducting GHG inventories across its production chain, from farming, care, harvesting, and transport to processing. Emission statistics are collected to develop a comprehensive database, serving internal management and preparing for participation in carbon market mechanisms once qualifying for the legal conditions.

According to Mr. Tran Thanh, Director of the Processing Enterprise under the Corporation, this inventory is not a mandatory requirement under current law, but it is a proactive step to help the enterprise familiarize itself with data-based emission management, in line with the general trend of a green economy.

"With a large forest area, we have the potential to research carbon sequestration projects in the future. However, generating legal carbon credits requires a rigorous process, from measurement methods to independent verification," Mr. Thanh emphasized.

Digital transformation to serve emission reduction management in the future

One of the highlights of Dong Nai Rubber's green transition journey is its strong application of digital technology in forest management and production. With just a smartphone, technical staff can monitor all information about each rubber plot via the company’s internal app. All information about planting density, planting year, pest status, and exploitation productivity is updated in real time. Thereby significantly shortening field inspection time and enabling faster, more accurate decision-making.

In addition, the DNRC-Traceability software, developed by the enterprise, allows full product traceability from latex tapper, harvesting time, and transport to processing and storage. This is a key factor enabling the company to meet the European Union Deforestation Regulation (EUDR), which mandates proof of forest-related product origins for exports to the EU.

With thorough preparation in data and traceability, Dong Nai's first rubber shipments were successfully exported to Europe in July 2024 and cleared customs smoothly.

In the processing stage, the company is accelerating production line automation, applying biological methods in wastewater treatment, reducing energy consumption, and minimizing secondary emissions. Its goal is that by 2026, all treated wastewater will be reused, moving toward a circular resource model.

According to Mr. Chu Dang Khoa, Deputy General Director of Dong Nai Rubber Corporation, a transparent data system from digital transformation is a prerequisite for businesses seeking deeper participation in future carbon market mechanisms, as all emission reduction or carbon sequestration activities must be demonstrated through specific, continuous, and verifiable data.

In the long term, once the domestic carbon market officially comes into operation, enterprises that have mastered emission data, ensured transparent forest management, and applied digital technologies will hold a clear advantage. At that point, carbon credits will become an additional source of added value alongside the traditional value of rubber products.

More importantly, proactively conducting emission inventories, digital transformation, and sustainable forest management will help rubber enterprises strengthen their overall competitiveness, meet increasingly strict environmental standards in major markets, and make practical contributions to Vietnam's commitment to net-zero emissions after COP26.