Long An Partners with Japanese Firm to Develop Carbon Credits on 100,000 Hectares of Rice Fields

A Japanese company will work with Long An’s agricultural sector to develop a carbon-credit generation model across 100,000 hectares of rice fields, using the alternate wetting and drying (AWD) method.

On September 13, Ms. Đinh Thị Phương Khanh, Deputy Director of the Long An Department of Agriculture and Rural Development, announced that the department had signed a memorandum of understanding with Faeger Co., Ltd. (Japan) to pilot carbon-credit generation models in rice production using the alternate wetting and drying (AWD) method.

Under the agreement, the two sides will cooperate to support farmers in sustainable agricultural practices, reduce greenhouse-gas emissions, and promote green transformation in the agricultural sector. The initiative also aims to accelerate agricultural projects and action plans that contribute to emission reduction efforts in Long An Province.

Specifically, the project will generate carbon credits while connecting financial resources from the Joint Crediting Mechanism (JCM) or voluntary carbon markets to help farmers advance green transition measures and secure funding for low-emission agricultural activities.

Faeger Co., Ltd. will take responsibility for implementation, providing technical expertise, monitoring project models, and covering all costs incurred during the pilot phase. These include payments to farmers participating in the trials, service fees, procurement of materials and necessary equipment, and compensation for any loss of income experienced by farmers during the experimentation period.

The Long An Department of Agriculture and Rural Development will ensure infrastructure, assign technical staff for coordination, and facilitate connections with farmers participating in the project.

In the initial phase, from October 2024 to July 2025, the project will pilot the model at the Hoa Phu Agricultural Research and Service Station in Chau Thanh District and at a household farm in Vinh Hung District, with each pilot site covering 0.5 hectares.

The project’s long-term goal is that by 2030, it will support farmers across Long An Province in generating carbon credits on 100,000 hectares of rice fields using the AWD method.