Practical applications of carbon credits in the economy. Part X: Exploiting carbon potential in intensive agriculture

DNHN - Intensive agriculture is a crucial method in meeting the increasing food demand and protecting the environment. However, this method holds significant potential for exploiting carbon credits, contributing to the fight against climate change.

Potential of carbon credits in intensive agriculture

Carbon credits are a means to reduce carbon dioxide (CO2) emissions and other greenhouse gases into the atmosphere. Carbon credits are generated through activities that reduce or produce fewer emissions. In agriculture, activities such as intensive farming can reduce carbon emissions and create a renewable resource.

Intensive agriculture contributes to reducing carbon emissions mainly through two methods: carbon sequestration and reducing the use of chemical fertilizers. Intensive agriculture employs planting and land management methods to enhance carbon absorption from the air into the soil. During photosynthesis, crops absorb carbon dioxide and convert it into organic matter, storing carbon in the soil. Simultaneously, reducing the use of chemical fertilizers in intensive farming also helps decrease carbon emissions from the production and use of fertilizers.

To exploit the potential of carbon credits in intensive agriculture, appropriate support and policies from government and non-governmental organizations are necessary. Policies and incentives can be established to encourage farmers to engage in intensive farming activities and reduce carbon emissions. These policies might include providing funding and preferential loans for farmers, promoting the use of organic fertilizers, and sustainable farming practices.

Furthermore, building a management and evaluation system for carbon credits in intensive farming is also crucial. Clear standards and procedures are needed to measure and determine the amount of carbon emissions reduced through intensive farming activities. Organizations that certify carbon credits can be established to inspect and certify intensive farming activities and provide carbon credits for trading and commerce.

Exploiting the potential of carbon credits in intensive agriculture not only brings environmental and climate change benefits but also creates economic opportunities for farmers.  

Mr. Le Hoang The, Director of The VOS Ecosystem Co., Ltd., said that Vietnam is one of the leading countries in terms of carbon emission growth. The energy and industrial sectors account for a large proportion of Vietnam's emissions, and the country has significant potential for carbon credit supply in the future.

According to Mr. Hoang, developing sustainable, ecological, and organic agricultural production solutions will help Vietnam increase productivity while reducing greenhouse gas emissions, opening up broad economic prospects from selling carbon credits to the world.

Agriculture ready to adapt to carbon trends

According to the Ministry of Agriculture and Rural Development, carbon credit trading has become an advanced method implemented by many countries, creating a carbon market, also known as the greenhouse gas emission reduction credit exchange market. This market is where organizations buy and sell the amount of greenhouse gases reduced or absorbed. Participants can include commercial enterprises or international organizations, including financial institutions and businesses.

In recent years, Vietnam has successfully conducted carbon credit transactions, earning about $60 million. The Biogas Program in Vietnam's livestock sector has been widely implemented, with 181,683 biogas plants built, benefiting 1 million rural people.

Notably, last year, Vietnam's forestry sector successfully sold 10.3 million forest carbon credits through the World Bank, with a total contract value of $51.5 million. This is considered a significant step forward, helping reduce CO2 emissions and bringing substantial economic benefits to the country.

Vietnam is currently implementing the green economy program and the United Nations' commitment to combating climate change, aiming for net zero carbon emissions by 2050. Mr. The emphasized that to achieve this, Vietnam needs a large and professional workforce, especially in building the mandatory carbon credit market. These employees need to be trained with in-depth knowledge of verification mechanisms, documentation, reporting, and evaluation of various carbon credits.

Minister of Agriculture and Rural Development Le Minh Hoan believes that a mindset change is needed to adapt to current global trends, where consumers not only buy products but also care about the production process.

“Applying stringent standards is essential for exporting agricultural products to demanding markets like the United States. For Vietnamese agriculture, production is not just about selling products but also about selling carbon credits, demonstrating progress and aiming for higher profits in the future”, said Minister Hoan.

The Minister emphasized that in the future, the carbon credit trading market will develop robustly. Therefore, Vietnamese agriculture needs to be ready to adapt to this trend to seize opportunities and maximize economic benefits from agricultural production activities.

Nghe Nhan