Advancing low-emission rice farming in Vietnam: a government-led carbon market approach

Decarbonising rice farming is pivotal for Vietnam’s pursuit of net-zero emissions by 2050 while maintaining its status as a leading global rice exporter. Drawing on qualitative data from surveys of 46 stakeholders–including government, business, and civil society representatives–and expert interviews, this study examines the socio-economic and institutional barriers to the adoption of low-emission rice farming practices. Key barriers include insufficient financial incentives, fragmented land holdings, policy gaps, and underdeveloped monitoring and verification systems. To address these challenges, the study proposes a government-managed Emission Reduction Fund (ERF), financed through carbon tax revenues and emission allowance auctions. The ERF would blend state oversight with performance-based incentives, offering stable income opportunities for farmers and advancing socio-economic equity. Findings highlight the potential of carbon markets not only to reduce agricultural emissions but also to drive sustainable rural development. This study contributes to emerging discussions on financing mechanisms and governance strategies for integrating climate mitigation within agricultural systems, particularly in developing economies.