Faeger Signs MOU with the Department of Agriculture and Rural Development (DARD) of Thanh Hoa Province, Vietnam
— Launching a Carbon Credit Project from Rice Paddies Utilizing AWD Technology —

Faeger Co. Ltd. is pleased to announce that on February 12, 2025, we signed a Memorandum of Understanding (MOU) with the Department of Agriculture and Rural Development (DARD) of Thanh Hoa Province*¹, Vietnam, to promote a project aimed at generating carbon credits from rice paddies.

This MOU marks the first collaboration between DARD of Thanh Hoa and a private-sector company, both domestically and internationally, to reduce greenhouse gas emissions through AWD (Alternate Wetting and Drying) practices.

■ Project Overview

This project aims to conduct a field demonstration for carbon credit generation through the implementation of AWD (Alternate Wetting and Drying)*² in rice cultivation. Through this collaboration, FAEGER and Thanh Hoa DARD will jointly support local farmers in achieving sustainable agricultural practices, reduce greenhouse gas (GHG) emissions, and contribute to the green transformation of the agricultural sector.

Specifically, the project will leverage financial mechanisms such as the

Joint Crediting Mechanism (JCM)*³ and voluntary carbon markets to secure funding that enables farmers to implement GX (Green Transformation) practices and emission reduction efforts. The project targets carbon credit generation from **50,000 hectares** of rice paddies in the province.




Field trial in rice paddies of Thanh Hoa Province

Thanh Hoa Province, located in north-central Vietnam, is the largest rice-producing region in the area and is equipped with extensive irrigation infrastructure, offering high potential for GHG reduction through AWD technology. Both parties have agreed to set the target area at 50,000 hectares, which accounts for nearly 50% of the total paddy area in the province, with room for further expansion depending on project progress.

■ MOU Signed with Thanh Hoa Agriculture Institute for Long-term Collaboration

In addition, on February 14, 2025, FAEGER signed a separate MOU with the Thanh Hoa Agriculture Institute*⁴ to establish a long-term (10-year) strategic partnership.

In addition to collaborating on the AWD carbon credit project in Thanh Hoa, both parties aim to engage in a wide range of initiatives including agricultural productivity improvement, joint research, and surveys. Joint field trials on GHG reduction using AWD practices are already underway with the institute, showing promising results.


MOU signing ceremony with the Thanh Hoa Agriculture Institute



Notes

*¹ Thanh Hoa Province is a local government area located in north-central Vietnam. It is the largest rice-producing region in the area.

*² AWD (Alternate Wetting and Drying) is an intermittent irrigation technique in rice cultivation that helps reduce greenhouse gas (GHG) emissions, particularly methane.

*³ JCM (Joint Crediting Mechanism) is a bilateral framework that enables partner countries and Japan to collaborate on GHG reduction projects and share the resulting credits.

*⁴ The Thanh Hoa Agriculture Institute is a public scientific and technological research organization under the provincial government. It conducts research and surveys related to agriculture and plays a key role in developing the province’s annual agricultural master plan.

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