Green Carbon and KIH launch a rice-paddy methane reduction project using Alternate Wetting and Drying (AWD) in Nghe An Province, Vietnam — aiming to develop a JCM methodology for agriculture, issue the first-ever Japan–Vietnam JCM carbon credits, and advance low-carbon farming, net zero goals, higher farmer incomes, and the growth of Asia’s carbon markets.
Green Carbon, Inc. has partnered with Korea Investment Holdings Co., Ltd. (“KIH”), a major Korean comprehensive financial group, to launch a rice-paddy methane reduction project using Alternate Wetting and Drying (AWD) in Nghe An Province, central Vietnam. The initiative applies the Joint Crediting Mechanism (JCM) promoted by the Government of Japan, and aims to become the first project to issue JCM carbon credits in Vietnam for both countries — expanding the supply of agriculture-derived carbon credits into Asia’s carbon markets and supporting both nations’ net zero goals.
Background and Overview of the Partnership
Under its vision of “Saving the Earth through the Power of Life,” Green Carbon provides end-to-end support for the creation, registration and sale of nature-based carbon credits. In Vietnam, since establishing its branch office in August 2024, the company has deepened its collaboration with local authorities and farmers, signing memoranda of understanding with provincial departments across 15 provinces, including the Mekong Delta region. It has been advancing the deployment of Alternate Wetting and Drying (AWD) to reduce methane emissions from rice paddies and building the foundation needed to convert these reductions into carbon credits.
KIH, one of Korea’s leading comprehensive financial groups, offers a broad range of financial services spanning securities, asset management and banking. With market expertise and a track record in the Korea Emissions Trading Scheme (K-ETS) — one of Asia’s most established carbon trading markets — the group actively promotes ESG investment, sustainable finance and carbon credit businesses across the region.
Drawing on their respective strengths, the two companies will verify the methane-reduction effect of AWD in rice paddies in Nghe An Province. They will also develop a JCM methodology and establish an MRV (Measurement, Reporting and Verification) framework, with the goal of issuing JCM carbon credits. Beyond greenhouse gas reductions, the partners aim to create multi-faceted value for regional agriculture, including lower water use and farming costs, improved productivity, and revenue returned to farmers.
JCM and the Potential of the Agricultural Sector
The JCM is a scheme in which Japan and partner countries jointly reduce and remove greenhouse gases, sharing the results as carbon credits between the two nations. Through the JCM, the Government of Japan aims to secure cumulative carbon credits of approximately 100 million t-CO₂ by FY2030 and approximately 200 million t-CO₂ by FY2040 — a key pillar of the country’s wider net zero strategy.
To date, the JCM has been used mainly in renewable energy and energy efficiency, but in recent years it has expanded into agriculture. AWD, which repeatedly floods and naturally dries rice paddies, is attracting attention as a method that curbs both methane emissions and water use. In the Philippines, the AWD methodology was approved by the Japan–Philippines JCM Joint Committee in February 2025, and Green Carbon is also developing JCM projects there.
The Vietnamese government has likewise positioned the reduction of agricultural greenhouse gas emissions as a priority policy, promoting a “Low-Emission Crop Production Programme” from 2025 to 2035. Centred on rice production, the programme advances AWD adoption, MRV development and a certification scheme for low-emission produce — raising expectations for JCM project formation and the maturing of Vietnam’s carbon markets in line with its net zero ambitions.
Roles of Each Company
Green Carbon will lead the overall development and operation of the AWD project, collaboration with local farmers and government agencies, the establishment of the MRV framework, JCM methodology development, and carbon credit generation. KIH will provide project investment and commercialisation support, contribute its expertise in ESG investment and sustainable finance, and explore the future use of carbon credits and the formation of related funds. Together, the two companies will build a robust business model that leverages their complementary strengths.
Comments from Both Companies
Jun Okita, Representative Director of Green Carbon, said that KIH’s deep expertise in the carbon credit market and its commitment to sustainable finance across Asia provide strong support for the project, and expressed his intention to expand a model that converts environmental value into farmer income — from Vietnam to the whole of Asia.
Dong-woo Han, Managing Director of KIH’s New Business Development Division, praised the initiative as a meaningful step towards building a sustainable agricultural model, and said the group will pursue collaboration opportunities in the high-growth JCM market by making the most of both companies’ strengths.
Future Outlook
With a view to full-scale commercialisation from 2026 onward, the two companies will expand the target areas and acreage based on the demonstration results in Nghe An Province. They ultimately plan to scale the project to approximately 62,000 hectares and achieve cumulative greenhouse gas reductions of around 5.3 million tonnes, establishing a large-scale model for generating agriculture-derived carbon credits and channelling them into regional and Asian carbon markets.
Green Carbon and KIH intend to establish this project as a model case for agricultural JCM in Vietnam, and will consider expansion to other regions in the country and to other Southeast Asian nations. The partners will scientifically verify the reduction effects of AWD while returning the benefits of water savings, lower farming costs and higher productivity to farmers — turning environmental value into farmer income. Through continued collaboration with governments, farmers, research institutions and financial partners, Green Carbon will keep advancing the social implementation of nature-based climate solutions and the spread of low-carbon agriculture, carbon trading and carbon credits across Asia.
About Green Carbon
Green Carbon is a climate-tech company driven by the vision of harnessing the power of nature to save the planet. It provides end-to-end support for the creation, registration and distribution of nature-based carbon credits in Japan and internationally, alongside ESG and carbon credit consulting and related environmental businesses. Its operations span more than 10 countries, primarily across Japan and Southeast Asia, covering rice-paddy initiatives (mid-season drainage and AWD), biochar, forest conservation, mangrove reforestation and methane reduction in the livestock sector.
Media Contact:
Company Name: Green Carbon, Inc.
Mail: r.ike@green-carbon.inc
Tel: +81-80-7307-8597
