Farmers in Vietnam’s Mekong Delta are set to receive nearly $40 million (1,000 billion VND) in carbon credit payments through the country’s 1-million-hectare low-emission rice initiative, Vietnamnet reported on Tuesday.
The project, named “One Million Hectares High Quality and Low-Carbon Rice in the Mekong
Delta” (or 1M Ha Project) and backed by the Transformative Carbon Asset Facility (TCAF), aims to reduce greenhouse gas emissions and promote sustainable growth.
On September 23, Vietnam’s Ministry of Agriculture and Rural Development (MARD) held a meeting to discuss the project’s pilot phase.
Earlier in September, the World Bank and TCAF approved Vietnam’s Project Idea Note (PIN) for this initiative, with funding commitments of $33.3 million, potentially increasing to $40 million, depending on the project’s results.
Disbursements will occur in two phases, with the first expected in 2025.
Relevant: Vietnam May Earn $200M Per Year From Selling Carbon Credits
The project’s pilot phase has shown promising results across five provinces, with 300 hectares of low-emission rice already harvested, according to MARD.
Farmers experienced lower input costs, higher rice prices, and increased incomes, as the high-quality rice was sold at rates above the market price.
Emission reduction factors were measured during this phase, and MARD plans to announce the official emission reduction coefficient for rice cultivation by next year.
Deputy Minister Tran Thanh Nam noted the positive impact on farmers, with many eager to participate in the low-emission rice initiative.
The project aims to increase the sustainability and value of Vietnamese rice while supporting the country’s commitment to environmental protection and net-zero emissions by 2050.
MARD expects the project to scale up significantly, reaching 200,000 hectares of low-emission rice by 2025.
