Dr. Tran Minh Hai - Vice Principal of the School of Public Policy and Agricultural Development - Photo: N.BINH
On August 16, at a workshop on carbon credit markets organized by the Vietnam Agriculture Newspaper, Dr. Nguyen Minh Hai, School of Public Policy and Agricultural Development, said that the project "Sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030" aims to build a high-quality rice cultivation area, associated with value chain production.
From there, apply good agricultural practices to increase the value of rice products and develop sustainably. Especially increase income for rice growers.
So carbon credit emission reduction production is one of the elements of this project and Vietnam is the first country in the world to implement a low carbon emission rice project.
In the project, in addition to counterpart funds, Vietnam is allowed to borrow 40 million USD non-refundablely from the World Bank (WB). In addition, a 360 million USD loan mechanism with national procedures is being implemented with WB experts and 12 provincial procedures are being completed for the project.
Progress update as of July 2024, 7 pilot models have been deployed, each model has an average area of 50 hectares in the provinces of Kien Giang, Can Tho, Soc Trang, Tra Vinh and Dong Thap.
Currently, the Department of Crop Production, in coordination with the Institute of Agricultural Environment, is developing a plan to establish and complete the measurement, reporting and verification (MRV) system. On July 4, the Department submitted to the Ministry of Agriculture and Rural Development for approval the plan to implement MRV on pilot models under the project.
"We borrow money to reduce carbon emissions. If we do not collect emission reduction credits, we will 'lose' rather than 'gain'. We need human resources who can implement and manage new production processes, understand and effectively apply technical measures to optimize the ability to absorb and reduce carbon emissions in agriculture," Mr. Hai affirmed.
It is estimated that producing 8 tons of rice will emit 8 tons of carbon. Currently, the Ministry of Agriculture and Rural Development is cooperating with the Transition Carbon Finance Fund (TCAF) to price carbon credits at $10/credit. If farmers fully comply with the procedures, they can reduce emissions by 30%, equivalent to reducing 2 carbon credits.
"The project's biggest economic benefit lies not only in selling carbon credits but also in reducing input costs through more efficient production processes. In addition, building a low-emission rice brand and reorganizing production on a large scale also brings significant surplus value," Mr. Hai emphasized.
He also noted that the rice carbon market should not be entered at all costs. Instead, the focus should be on implementing proper and sustainable production processes that ensure long-term benefits for both farmers and the agricultural economy.
For export enterprises, according to Mr. Dang Thanh Long - Head of Training and Sustainable Development at Intertek Vietnam, in general, if the carbon market operates late, Vietnamese export enterprises will suffer. Therefore, manufacturers in third countries need to calculate the amount of "embedded" emissions in the amount of exported goods, including direct and indirect emissions.
Ho Chi Minh City has 60 projects related to carbon credits.
According to Mr. Cao Tung Son - Director of the Center for Natural Resources and Environment Monitoring (Department of Natural Resources and Environment of Ho Chi Minh City), Ho Chi Minh City has issued an Action Plan to respond to climate change for the period 2021 - 2030, with a vision to 2050. Currently, Ho Chi Minh City has about 60 projects related to carbon credits, which is a large number.
According to government regulations, 2,400 Vietnamese enterprises will have to declare and inventory carbon. Of these, Ho Chi Minh City has 140 enterprises subject to quotas, accounting for a relatively high rate compared to the average.
Source: https://tuoitre.vn/vay-tien-de-phat-thai-carbon-thap-lam-khong-dung-se-lo-2024081611052374.htm
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