Japan-Vietnam First: Green Carbon Partners with Korea’s Major Financial Group KIH to Launch AWD Project for JCM Credit Generation in Nghe An Province, Vietnam

Green Carbon Co., Ltd. (Representative Director: Jun Okita, hereinafter "Green Carbon"), Japan’s largest nature-based carbon credit developer and seller, announces its collaboration with Korea Investment Holdings Co., Ltd. (hereinafter "KIH"), a major South Korean integrated financial group, to launch a methane gas reduction project in rice paddies using Alternate Wetting and Drying (AWD) in Nghe An Province, central Vietnam.

This initiative applies Japan’s Joint Crediting Mechanism (JCM) (※2), promoted by the Japanese government, and represents the first carbon credit-related project in both Japan and Vietnam aimed at issuing JCM credits from the agricultural sector. Through collaboration with local farmers, government bodies, and partner companies, Green Carbon will expand the creation of agriculture-derived carbon credits across Southeast Asia, contributing to global and corporate decarbonization.

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◆ Background of the Collaboration

Green Carbon operates under the vision of "Saving the Earth with the Power of Life," providing end-to-end support for the creation, registration, and sale of nature-based carbon credits. The company is actively promoting carbon credit generation projects in the agricultural sector across Southeast Asian countries. In Vietnam, Green Carbon is particularly focused on reducing methane emissions from rice cultivation using AWD technology. Since establishing its branch office in August 2024, Green Carbon has built strong partnerships nationwide, signing memorandums of understanding (MOUs) with provincial authorities in 15 provinces, including the Mekong Delta region, to accelerate the deployment of AWD.

Meanwhile, KIH Group, a leading financial group in South Korea, is actively expanding into ESG investments and global climate change mitigation initiatives. In recent years, as a major participant in Korea’s largest emissions trading system (K-ETS), KIH has accumulated extensive market expertise and transaction experience, advancing carbon credit-related businesses centered on Asia. Additionally, KIH is strengthening collaborations with credit developers, buyers, and financial institutions, with an eye toward establishing related funds.

Against this backdrop, both companies have conducted discussions and decided to launch an AWD project in Nghe An Province, central Vietnam. This project will implement AWD technology to reduce methane emissions from rice paddies, with the future goal of JCM methodology approval and JCM credit issuance. Beyond technological demonstration, the project aims to create multifaceted value, including improving the sustainability of local agriculture, increasing farmers’ income, and enhancing water resource efficiency.

Going forward, based on the results of the pilot project, the company will consider expanding the target area and cultivated area, aiming to establish a model case for agricultural JCM projects within Vietnam.

○ Map of Nghe An Province

◆ Japan’s JCM and Agricultural Sector Initiatives

The JCM (Joint Crediting Mechanism) is a system where Japan and partner countries collaborate to reduce greenhouse gas emissions, sharing the resulting emission reduction credits. JCM includes both private-sector JCM, where credits are shared between companies and governments, and investment-type JCM between governments. Like J-Credits, JCM credits are recognized as compliance credits applicable to national NDCs (Nationally Determined Contributions). The Japanese government has set a target of generating 100 million tons of credits by 2030 and 200 million tons by 2040 through JCM.

Until now, JCM credits have primarily been issued in renewable energy and energy-saving sectors. However, in recent years, expansion into the agricultural sector has progressed. According to think tank statistics, if current issuance rates continue, cumulative greenhouse gas reductions and absorptions through JCM by 2030 are expected to reach approximately 57 million tons. The remaining 43 million tons needed to meet the 100 million-ton target are expected to be secured through additional private-sector JCM projects.

Among private-sector JCM initiatives, AWD (Alternate Wetting and Drying) has gained significant attention across Southeast Asia as a method to reduce methane emissions from rice paddies. In the Philippines, the methodology was approved in February 2025 by the Japan-Philippines JCM Joint Committee. Following this approval, Green Carbon has established multiple JCM projects in the Philippines, and its carbon credit investment projects in the country are already fully sold out.

〇 Projected Progress Toward JCM Credit Generation Targets (Created by Green Carbon)

◆ Expansion of Agriculture and JCM in Vietnam

The Vietnamese government currently positions greenhouse gas reduction in agriculture as a national key policy, promoting the "Low-Emission Crop Production Program" from 2025 to 2035. In the rice-based agricultural sector, efforts are underway to reduce methane using AWD (Alternate Wetting and Drying), establish MRV (Measurement, Reporting, and Verification) systems, and develop low-emission certification schemes.

Additionally, during the Japan-Vietnam summit in May 2026, both countries agreed to strengthen cooperation in low-carbon growth areas, including JCM, and expand collaboration in agriculture and irrigation. As a result, expectations are rising in Vietnam for the development of agricultural JCM projects and the establishment of a carbon credit market.

Green Carbon Vietnam (Green Carbon’s branch in Vietnam) participated in meetings related to the "Low-Emission Crop Production Program" hosted by Vietnam’s Ministry of Agriculture and Environment, presenting its AWD projects in 15 provinces, JCM collaboration status, and initiatives toward AWD methodology, MRV system development, and carbon credit monetization.

Furthermore, Green Carbon is advancing the development of AWD methodologies, MRV systems, and data management infrastructure through collaboration with local governments, research institutions, and farmer networks, laying the foundation for commercializing JCM in the agricultural sector.

This collaboration with KIH is being implemented against the backdrop of Vietnam’s low-carbon agricultural policies, strengthened Japan-Vietnam JCM cooperation, and growing international demand for carbon credits, accelerating the commercialization of JCM in Vietnam’s agricultural sector.

Reference URL: VIETNAM.VN (Article on the May 2026 Japan-Vietnam summit)
https://www.vietnam.vn/ja/thu-tuong-nhat-ban-an-tuong-voi-su-phat-trien-cua-viet-nam-vi-nhu-rong-bay-len

◆ Roles of Each Company

Green Carbon

Development and operation of the overall AWD project

Promotion of collaboration with local farmers and government agencies

Establishment of MRV (Measurement, Reporting, Verification) systems

JCM methodology development and credit