According to information from the Department of International Cooperation (Ministry of Agriculture and Rural Development), on September 12, 2024, the management board of the Transformative Carbon Asset Facility (TCAF) issued a letter confirmingViet Nam's Project Idea Note (PIN) to support the implementation of the 1-million-hectare rice project.
According to the confirmation letter, TCAF has decided to approve a disbursement of USD 33.3 million, which could increase to USD 40 million (equivalent to VND 826-992 billion), to supportViet Nam in implementing the development of 1 million hectares of rice. This amount will be used to pay carbon credits to rice farmers in the Mekong Delta under the high-quality, low-emission, 1-million-hectare rice development project. The project is supported by TCAF and the World Bank (WB).
In phase 1, USD 15 million will be disbursed, which may increase to USD 18 million. Negotiations on the Emission Reductions Payment Agreement (ERPA) with TCAF are expected in May 2025. In phase 2, the disbursement will be USD 18.3 million, which may increase to USD 22 million.
Additionally, TCAF will provide technical assistance worth USD 2 million (managed directly by the WB) to carry out capacity-building activities to implement Article 6 of the Paris Agreement, the MRV system, and other requests.
The project' Development of a 1-Million-Hectare High-Quality, Low-Emission Specialized Rice Cultivation Area Linked to Green Growth in the Mekong Delta by 2030' has successfully piloted seven models in five provinces of the Mekong Delta. The first season has yielded promising results, with reduced costs, increased rice prices, and improved farmer income. Businesses have pledged to purchase rice at prices higher than the market rate. This success instills optimism and hope for the future of the project.
The Ministry of Agriculture and Rural Development, in collaboration with the WB and other agencies, is steadfast in its commitment to measure and verify carbon credits from rice production. Our aim is to sell these credits to international organizations, thereby contributing to the global effort to combat climate change. The WB and TCAF are equally committed to supportingViet Nam in achieving its ambitious goal of net-zero emissions by 2050. This collective commitment should inspire and motivate us all.