Australia promotes carbon market collaborations

These agreements will allow the development of carbon markets that are ecologically sustainable and beneficial to Vietnam.

The six multi-stakeholder partnerships, supported by an investment of $3.3 million from DFAT, will leverage more than $3.7 million in private sector investment and resources towards improving the enabling environment for carbon market projects in Vietnam that can deliver verifiable and sustainable social and environmental outcomes.

The new collaborations will test and evaluate novel techniques inside voluntary market frameworks to cut greenhouse gas emissions, lower carbon market entry barriers for producers, create capacity among local stakeholders, and offer major social benefits.

"Australia is ambitious about what we can do with Vietnam and the region in facing the problems of climate change," said Chargé d'Affaires Mark Tattersall. "These new BPP Carbon Markets collaborations are part of Australia's commitment to supporting greater climate action in our area, especially via climate partnerships that offer social and environmental benefits to local people."

The Vietnam Carbon Markets Partnerships

The six announced collaborations are:

Utilising satellite technology to incentivise low-emission rice production is a collaboration by CarbonFarm Technology, the International Rice Research Institute, Rikolto, and DFAT to teach and assist rice growers in adopting lower-emission methods. In addition, the cooperation will test a satellite-based measurement, reporting, and verification system for rice. Using breakthroughs in remote-sensing technology, the MRV satellite will identify sustainable practices and precisely quantify emissions reductions from satellite photos. The International Rice Research Institute provides scientific advice and on-site data control assistance to guarantee the initiative achieves the required emissions reductions.

Increasing access to carbon markets for sustainable rice producers is a collaboration between the International Rice Research Institute - Vietnam, the Gold Standard, and DFAT to develop a new system for earning carbon credits from rice cultivation. The initiative aims to develop a digital platform that simplifies the process of registering and assessing mitigation projects under the new methodology while providing training and capacity-building tools to facilitate the widespread use of the methodology and platform and enabling smallholder rice producers to participate in carbon markets.

Enabling nature-based carbon projects is a partnership with NatureCo, One Tree Planted, the Centre for Nature Conservation and Development, Cooper Energy, and DFAT to identify opportunities for nature-based solutions (NbS) across Vietnam, work with local organisations to build carbon skills, and develop an NbS pilot project centred on carbon mitigation through reforestation. The acquired knowledge will create a toolbox and lay the groundwork for future expansion and private-sector investment in NbS in Vietnam.

Upland crop planting for incomes and carbon sequestration is a collaboration between Greenfield Consulting and Development, the University of Queensland, the Forest Science Centre of Northwest Vietnam, and DFAT to produce carbon credits by planting timber and multi-purpose (fruit and timber) trees on sloping cropland in Son La province. The initiative aims to plant 100,000 trees and create at least 300,000 metric tonnes of carbon abatement for carbon credits, enhancing local lives and the environment.

Biochar for carbon sequestration and enhanced livelihoods is a project between Biocare Projects, EnergyLink Services, the University of Adelaide, Ho Chi Minh City University of Technology, Mai Anh Dong Thap, and DFAT to create biochar production in the Mekong Delta. The project seeks to remove roughly 15,000 metric tonnes of CO₂ per year while generating new revenue streams for local communities by purchasing carbon credits and biomass feedstock.

Promoting nature-based solutions through afforestation carbon projects: a collaboration with South Pole, Energy and Environment Consultancy, and DFAT to develop nature-based carbon initiatives in Vietnam and promote an enabling environment for jurisdictional and nested REDD+ programmes based on current afforestation operations in Northwest Vietnam. The collaboration will increase the individual and institutional ability to conduct carbon projects through on-the-ground assistance, training, and technical support, paving the way for future forest management and carbon initiatives.

The BBP facilitates collaborations between DFAT and inclusive, financially sustainable firms to achieve strategic development targets, emphasising gender equality, social inclusion, and climate impact. The initiative has sponsored 52 collaborations in 18 countries since 2016.

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