Funded by the Livelihoods Carbon Funds (LCF) and in partnership with the Dong Thap Department of Agriculture and Rural Development and the Mekong Conservancy Foundation (MCF), this pilot project aims to establish a sustainable and low-emission rice model in Vietnam. It focuses on reducing greenhouse gas (GHG) emissions and water use in rice cultivation while improving soil and water biodiversity and increasing farmer income, laying the foundations for a future regenerative rice system.
Rice cultivation in Vietnam has a long and rich history, especially since the 1990s when land reforms gave farmers control over their fields. Systems of dikes and canals were built to intensify production, allowing up to three harvests a year. While this increased yields and supported food security, it also contributed to environmental degradation. In fact, intensive rice management has degraded soil health and made farms more vulnerable to climate impacts like saltwater intrusion. By 2050, rice production could drop by 15%. Farmers also face challenges such as high costs and limited land access which reduce their income potential, even with three production cycles per year.
Methane accounts for 1% of GHG emissions by weight but is responsible for 50% of the global warming potential, and flooded rice paddy fields account for 12% of global anthropogenic methane emissions. When rice paddies are flooded, they create low-oxygen conditions that allow bacteria to break down organic matter, releasing methane. In addition, common practices like dense seeding and heavy fertiliser use amplifies the problem: overuse of nitrogen-based fertiliser that cannot be absorbed by the plants leads to nitrous oxide emissions. The open burning of rice residues like straw and husks increases emissions as well.
The project aims to promote sustainable water management and optimal use of resources to maintain yields, improve farmer incomes and reduce GHG emissions.
Approximately 8,000 rice farmers across 14,500 hectares in the Dong Thap province will be supported in adopting these methods. The project also promotes alternatives to burning rice straw by supporting alternative uses, such as the production of mushroom or compost, that also offer a source of income diversification.
Farmers will receive ongoing coaching under Rikolto’s coordination to transition towards the adoption of the Sustainable Rice Platform standard and improve water management practices. Cooperatives will receive support in developing business plans to diversify services offered to members, finding new ways to use rice straw (for mushrooms and compost) and establishing market connections for these products.
In Vietnam’s rice sector, there are currently no quality premiums that reward farmers for adopting sustainable practices, which limits incentives for eco-friendly farming on a larger scale. To bridge this gap, the project will offer financial incentives such as discounts on irrigation fees and funding to help cooperatives process rice by-products. Additionally, the project aims to create carbon credits over the next decade, providing a financial reward for farmers who reduce greenhouse gas emissions. To make this feasible, the project will use an innovative, low-cost system for Measurement, Reporting and Verification (MRV). Developed by CarbonFarm and implemented with IRRI and Rikolto, this remote system uses satellite images to track emission reductions in rice fields and aims to reduce the barriers to accessing carbon markets for farmer organisations.
Once farmers have fully adopted sustainable water and straw management practices (targeted by year 5), the project will expand to include additional regenerative methods, which will be trialled from year 1 on a 300-hectare area near Tram Chim National Park. This 7,500-hectare wetland is home to a variety of bird species, including the sarus crane, a rare species on the IUCN Red List of Threatened Species. Practices such as minimal soil disturbance, continuous soil protection with plant cover and diverse crop and cover crop rotations will be applied with a focus on improving soil fertility and biodiversity. By creating semi-natural habitats within rice fields, we want to demonstrate that the adoption of regenerative rice cultivation can provide feeding and nesting opportunities for wildlife.
We believe that through this project, we can unlock the potential of Vietnamese rice farmers to not only produce sustainably but also contribute meaningfully to global climate action. By reducing emissions and optimizing resource use, the project stands as a blueprint for future regenerative rice systems.
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