Unlocking carbon credit potential: [3] New direction for rice production

"Implementing emission-reducing rice models is not only a technical advancement but also an opportunity for farmers to access new added value through carbon credits," said Mr. Nguyen Duc Cuong, Deputy Director of the Thanh Hoa Department of Agriculture and Environment.

The rice fields in Yen Phong commune are quietly undergoing transformation. Water is no longer kept fully flooded as in previous years but is maintained at moderate levels, alternating between wet and dry phases. This reflects the use of the Alternate Wetting and Drying (AWD) irrigation method, which is an advanced technique now being widely implemented in Thanh Hoa. These seemingly small changes carry significant meaning for the province's agricultural transition, moving toward sustainable development and creating new value for rice through carbon credits.

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With a total rice growing area of around 225,000 ha/year, Thanh Hoa is among the largest rice-producing localities nationwide. This also means that methane emissions—one of the greenhouse gases with an effect dozens of times greater than CO₂—can be significantly reduced. In the context of increasingly complex climate change, the province's agricultural sector must not only ensure food security but also reduce emissions, enhance climate resilience, and gradually participate in the carbon market, a new trend in the green economy.

From pilot to expansion of low-carbon rice models

In 2024, Thanh Hoa launched a pilot project on "Generating Carbon Credits in Rice Production" in Yen Phong commune. With 100 ha applying the AWD method, the model recorded an average emission reduction of 4.84 tons of CO₂e/ha. This is a promising outcome under local farming conditions and provides a basis for calculating the volume of carbon credits that can be traded on the market.

These initial successes pave the way for cooperation programs in 2025. The province has signed a memorandum of understanding with Japan's Faeger Company to implement 200 ha of emission-reducing rice within the year, with a target of expanding to 50,000 ha by 2030. Beyond large-scale implementation, the models are undergoing in-depth research. In Tho Xuan, the Thanh Hoa Agriculture Institute is collaborating with Japanese experts to conduct experiments on a 4,000-m² plot, standardizing irrigation procedures and identifying parameters best suited to local climate and soil conditions.

In parallel, Green Carbon Company has expanded its project to more than 5,600 ha in both spring–autumn crops of 2025 in key communes such as Yen Dinh, Yen Truong, Yen Phu, Dinh Tan, and Dinh Hoa. Areas long accustomed to traditional farming are now integrating water measuring devices, electronic data recording, and monitoring via mobile app, thereby enabling efficient management and remarkable emission reductions.

The involvement of Hanoi University of Science and Technology marks a notable step in advancing digital technologies in the fields. The AI-powered rice model in Hoang Loc and Ha Long allows real-time monitoring of soil moisture, crop conditions, and pest forecasts, helping farmers proactively adjust their technical solutions.

As of now, the province has 5,887.4 ha of emission-reducing rice, with a stable reduction rate of 4.5–5 tons of CO₂e/ha. These production areas meet the requirements for measurement, reporting, and verification (MRV), which is a critical technical criterion for carbon credits to qualify for market participation.

However, the implementation process still faces numerous challenges. The small and fragmented scale of production makes it difficult to synchronously apply technical solutions. Erratic weather, sometimes causing prolonged drought or unseasonal rains, disrupts the AWD process, which requires precise water-level control. Complex pest developments also place significant pressure on productivity. In addition, the carbon credit market is still new to both businesses and farmers, meaning production organization, data recording, and verification require substantial technical support.

Mr. Nguyen Duc Cuong emphasized, "It is important to synchronize techniques, technology, and policies to build a green, sustainable, and internationally competitive agriculture."

Synchronizing techniques, digitalization, and policies toward 100,000 ha of low-carbon rice

In line with the "Low-Emission Crop Production for the 2025-2035 Period" project launched by the Ministry of Agriculture and Environment, Thanh Hoa has outlined a strategy to expand low-carbon rice cultivation to 100,000 ha and to develop 15,000 ha of emission-reducing sugarcane.

The province is implementing synchronous solutions toward economic and environmental benefits. Thanh Hoa is accelerating the development of institutions and policies, prioritizing major projects on organic agriculture, high-tech agriculture, key product development, and the use of organic fertilizers. At the same time, incentive mechanisms are being introduced to create favorable conditions for businesses and farmers to participate confidently in the carbon market, which has vast potential but requires a transparent policy framework.

Standardizing technical procedures is a top priority. AWD, SRI, and advanced water and nutrient management measures are being uniformly applied across production areas to minimize differences between regions, improve the reliability of emission data, and facilitate the measurement, reporting, and verification (MRV) process, thereby ensuring that carbon credits meet international standards.

Digital technology has become a powerful tool in production management. Water-level sensors, satellite imagery, electronic logs, and data platforms enhance transparent monitoring, save time, and reduce the risk of errors. Technology also supports the assessment of emission reductions, connects carbon projects, and enables product traceability, thereby increasing the value of agricultural products and strengthening their reputation in the market.

The role of farmers and cooperatives is also prioritized. Revenue from carbon credits is distributed transparently, ensuring that farmers receive direct benefits. This creates motivation to maintain and expand low-emission cultivation practices while improving product quality and value.

Thanh Hoa is promoting multi-stakeholder linkages between enterprises, institutes, universities, and international organizations. This cooperation facilitates technology transfer, access to green finance, and market expansion for low-carbon rice and sugarcane products, moving toward a green, sustainable, and higher-value agriculture.

Alongside carbon credits, the province also assesses the development of new added value, such as using rice by-products to produce organic fertilizers and biofuels, developing low-carbon rice, and creating agricultural tourism models associated with green production. These efforts help generate additional income and shape a circular agricultural ecosystem.

The initial results from low-carbon rice models in Thanh Hoa demonstrate that this direction is entirely feasible, though practical challenges remain. Production scales remain uneven, weather patterns are increasingly unpredictable, and the techniques employed require stringent control, while the carbon credit market remains unfamiliar to many farmers and businesses.

"Revenue from carbon credits provides farmers with additional motivation, but to achieve large-scale and sustainable development, we need to synchronize policies, standardize techniques, and boost technological application," Mr. Nguyen Duc Cuong emphasized.

Each hectare of rice managed scientifically and each carbon credit generated are directly linked to economic and environmental benefits. With the companionship of farmers, enterprises, and management agencies, Thanh Hoa is gradually shaping a green agriculture that both ensures food security and contributes to emission reduction, moving toward sustainable value for farmers.