[Expansion in Vietnam] Green Carbon Signs MOU with An Giang Province's Department of Agriculture and Environment (DAE) | Aiming to Scale to 100,000 Hectares by 2035, Targeting Creation of Approximately 3.66 Million Tons of Carbon Credits

Green Carbon Co., Ltd. (CEO: Jun Okita, hereinafter "Green Carbon") announces the signing of a Memorandum of Understanding (MOU) with the Department of Agriculture and Environment (DAE) of An Giang Province (An Giang) in Vietnam's southern Mekong Delta region, regarding greenhouse gas emission reduction and carbon credit generation through the introduction of AWD (Alternate Wetting and Drying). This MOU aims to advance the "Vietnam 1 Million Hectare Project," with the project launching on approximately 100 hectares in 2025 and scaling up to approximately 100,000 hectares by 2035, targeting the creation of approximately 3.66 million tons of carbon credits.

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◆ Background of the MOU with An Giang Province's DAE

Green Carbon is actively engaged in generating nature-based carbon credits across Southeast Asia, implementing projects in diverse fields such as forest conservation, rice paddies, mangrove reforestation, livestock methane reduction, and biochar. The company develops carbon credit projects tailored to the natural resource characteristics of each region and achieves efficient and transparent project operations through site selection and monitoring using satellite data.

In Vietnam, Green Carbon is particularly focused on reducing methane emissions from rice cultivation using AWD (Alternate Wetting and Drying) technology. Since establishing a local office in August 2024, the company has built strong partnerships nationwide, signing MOUs with authorities in 15 provinces, including the Mekong Delta region, accelerating the deployment of AWD and related initiatives.

Building on this background, Green Carbon has signed an MOU with the Department of Agriculture and Environment (DAE) of An Giang Province in Vietnam's southern Mekong Delta. DAE will primarily promote the AWD project within An Giang Province, facilitating farmer introductions and participation, providing technical guidance, and requesting cooperation from relevant agencies. Green Carbon will collaborate with research institutions and universities within Vietnam to measure methane emissions from rice paddies, collect necessary data, and issue and sell carbon credits. The project will commence on approximately 100 hectares in 2025, with plans to gradually expand the target area to 100,000 hectares by 2035.

〇 An Giang Province (Reference: Google Earth)

An Giang Province is located in the Mekong Delta region of southern Vietnam and is one of the country's major agricultural hubs. With favorable natural conditions and a well-developed irrigation system, it plays a crucial role in rice production. The province is also actively promoting the adoption of advanced and sustainable agriculture, including high-quality rice production. As a key rice-producing area in the Mekong Delta, it is well-suited for the introduction of low-emission agricultural models. Green Carbon will contribute to the development of sustainable agriculture in the province by reducing methane emissions through the introduction of AWD.

◆ Green Carbon's Initiatives in Vietnam

◆ Achievement: Verra Project Registration in An Giang Province

On February 3, 2023, Verra, the international carbon offset standard management body, announced the temporary suspension of carbon credit registration under the Verified Carbon Standard (VCS) for methane gas reduction from rice straw. This was due to the need for adjustments identified during an internal interim review of the methodology. In response, on February 28, 2025, the VCS carbon credit issuance standard released the carbon credit methodology "VM0051 Improved Management in Rice Production Systems" for greenhouse gas emission reduction in rice cultivation, reviving the program. Based on this, Green Carbon applied to Verra in August 2025 for a project to be implemented in An Giang Province and was accepted, achieving the world's first registration for this type of project. In An Giang Province, demonstration across three annual cropping cycles has been completed on approximately 100 hectares of rice paddies, and public comments on this project have commenced.

Reference URL: [World First] Green Carbon Co., Ltd. Begins Public Comment on Verra VM0051 Project in An Giang Province, Vietnam, for Methane Gas Reduction from Rice Paddies

https://prtimes.jp/main/html/rd/p/000000191.000117956.html

◆ Movement Toward JCM in Vietnam

The Joint Crediting Mechanism (JCM) is a system where Japan and partner countries collaborate on greenhouse gas reduction efforts, sharing the resulting emission reduction achievements. JCM includes the private-sector JCM, where credits are shared between private companies and governments, and the investment-type JCM, where credits are shared between governments. Like J-Credits, JCM credits are recognized as compliance credits that can be used toward national NDCs (nationally determined contributions). The Japanese government has set targets to generate 100 million tons of credits by 2030 and 200 million tons by 2040 through JCM.

Until now, JCM credits have primarily been issued in the fields of renewable energy and energy efficiency, but in recent years, expansion into agriculture has progressed. According to think tank statistics, if current trends continue and JCM credits are issued sequentially, the cumulative emission reduction and absorption volume through JCM by 2030 is expected to reach approximately 57 million tons. The remaining approximately 43 million tons, which are short of the cumulative 100 million ton target, are expected to be secured through additional private-sector JCM projects.

〇 Projected Transition Toward JCM Creation Target (Created by Green Carbon)

The Vietnamese government currently positions greenhouse gas reduction in agriculture as one of its national key policies and is promoting the "Low-Emission Crop Production Program" from 2025 to 2035. In the agricultural sector, particularly focused on rice, efforts are underway to reduce methane through AWD (Alternate Wetting and Drying), establish MRV (Measurement, Reporting, and Verification) systems, and build low-emission certification schemes.

Furthermore, at the Japan-Vietnam summit meeting in May 2026, enhanced cooperation in low-carbon growth areas, including JCM, was agreed upon, indicating expanded collaboration in agriculture and irrigation. This has heightened expectations within Vietnam for the formation of JCM projects in agriculture and the development of a carbon credit market. Green Carbon Vietnam (Green Carbon's Vietnam branch) participated in meetings related to the "Low-Emission Crop Production Program" hosted by Vietnam's Ministry of Agriculture and Environment, presenting on AWD projects being promoted in 15 provinces, JCM collaboration status, and initiatives toward AWD methodology, MRV system development, and carbon credit generation. Furthermore, Green Carbon, through collaboration with local governments, research institutions, and farmer networks, is advancing AWD methodology, MRV