i i About this report This report is an output under the project Accelerating methane reductions in rice production systems through market-based mechanisms (AMR), funded by Clean Climate and Air Coalition (A-2022-110). It synthesizes stocktaking reports developed by The Creagy Company Limited for Thailand, the Institute of Policy and Strategy for Agricultural and Rural Development (IPSARD) for Vietnam, and by the IRRI Team for the Philippines, Thailand, and Vietnam. It also leverages the insights gained from the Regional Stakeholder Consultation Workshop held in Manila, Philippines, in March 2025. We would also like to acknowledge valuable contributions from the Methane Accelerator for Southeast Asia (MASEA) project, funded by USAID, which evaluates investment opportunities and proposes policy options for promoting carbon mitigation in rice production in the Philippines, Thailand, and Vietnam. Authors Philippines Thailand Vietnam Cynthia Jean Batin Justin Dela Rueda Tobiah Gonzalez Karen Pajadan Boonrod Yaowapruek Ray Anthony Almonares Phatchariya Welutung Sitthichat Sukpholtham Tran Nghia Dai Hai Le Trong Dung Thi Kim Dinh Ong Quoc Cuong Approval Author: Alisher Mirzabaev Citation: Batin CJ, Gonzalez TR, Pajadan K, Dela Rueda J, Yaowapruek B, Almonares RA, Welutung P, Sukpholtham S, Hai LT, Tran ND, Dinh D, Cuong OQ, and Mirzabaev A. (2025). Stocktaking of policy, institutional readiness, and carbon initiatives for Just Low-carbon Transitions in the Philippines, Thailand, and Vietnam. Los Baños, Philippines: International Rice Research Institute. 63 pages. ii Contents List of Tables ............................................................................................................................... iii List of Figures .............................................................................................................................. iv Acronyms .................................................................................................................................... v 1 Introduction .............................................................................................................................. 1 2 Objectives ................................................................................................................................ 2 3 Nationally determined contributions under the Paris Agreement: international frameworks for promoting climate change mitigation in the rice systems .............................................................. 2 3.1 The Clean Development Mechanism ............................................................................... 2 3.2 The Paris Agreement ...................................................................................................... 3 4 Policy reviews by country ........................................................................................................... 4 4.1 Philippines .................................................................................................................... 4 4.2 Thailand ........................................................................................................................ 6 4.3 Vietnam ...................................................................................................................... 10 5 Carbon initiatives in the agriculture sector by country ................................................................. 12 5.1 Philippines .................................................................................................................. 12 5.2 Thailand ...................................................................................................................... 13 5.3 Vietnam ...................................................................................................................... 14 6 Institutional readiness for just low-carbon transition in rice production systems ........................... 17 6.1 Philippines .................................................................................................................. 17 6.2 Thailand ...................................................................................................................... 25 6.3 Vietnam ...................................................................................................................... 32 7. Synthesis ............................................................................................................................... 46 References ................................................................................................................................ 47 iii List of Tables Table 1: Thailand’s national plans and strategies towards low-emission transition. ............................ 8 Table 2: Development goals in the Climate Change Action Plan for the Agriculture Sector (2023 – 2027) that support Thailand’s transition to low-emission rice farming......................................................... 9 Table 3. Summary of carbon credit programs/projects according to standards in Vietnam................. 16 Table 4. Support received (in percent) by rice farmers to implement climate-smart practices, by type of support and technology in Vietnam, 2024. ...................................................................................... 1 Table 5. Data availability for greenhouse gas inventories and measurement, reporting, and verification in rice cultivation in Vietnam. ....................................................................................................... 42 Table 6. Summary of institutional readiness in just low-carbon transition in rice systems in the Philippines, Thailand, and Vietnam. ............................................................................................. 45 iv List of Figures Figure 1. Project overview of AgResults. ........................................................................................ 16 Figure 2. Key stakeholders for implementing the nationally determined contribution in the Philippines. ................................................................................................................................................. 19 Figure 3. Stakeholders' influence-interest matrix and strategies to advance low emission initiatives, Philippines, 2025. ....................................................................................................................... 20 Figure 4. Farmers’ awareness on alternate wetting and drying technology (in percent) in select provinces in the Philippines, 2024. ............................................................................................... 21 Figure 5. Farmers who received support to adopt AWD (in percent) in select provinces in the Philippines, 2021-2024. .............................................................................................................. 22 Figure 6. Incentives preferred by rice farmers to adopt climate-smart practices and technologies in select provinces in the Philippines, 2024. ..................................................................................... 22 Figure 7. Farmers’ awareness on carbon market by key concept (in percent) in select provinces in the Philippines, 2024. ....................................................................................................................... 23 Figure 8. Interaction between climate and agriculture stakeholders in forming Thailand’s policies on low-emission transition in agriculture and rice farming. ................................................................. 26 Figure 9. Stakeholders' influence-interest matrix and strategies to advance low emission initiatives, Thailand, 2025............................................................................................................................ 27 Figure 10. Farmers’ awareness on various climate-smart technologies (in percent) in rice in select provinces in Thailand, 2024. ........................................................................................................ 28 Figure 11. Farmers' water regime (in percent) in select provinces in Thailand, 2024 ........................... 29 Figure 12. Support received (in percent) by farmers to implement climate-smart practices, by type of support and technology in Thailand, 2022-2024............................................................................. 29 Figure 13. Incentives preferred (in percent) by farmers to adopt climate-smart practices and technologies in select provinces in Thailand. 2024. ........................................................................ 30 Figure 14. Farmers’ awareness of carbon market by key concept (in percent) in select provinces in Thailand, 2024............................................................................................................................ 31 Figure 15. Key stakeholders for implementing the nationally determined contributions in Vietnam ..... 34 Figure 16. Stakeholders' influence-interest matrix and strategies to advance low emission initiatives, Vietnam, 2024 ............................................................................................................................ 36 Figure 17. Farmers’ awareness on various climate-smart practices and technologies (in percent) in rice by province, Vietnam, 2024. ........................................................................................................ 37 Figure 18. Farmers’ water regime (in percent) by select provinces and cropping seasons in Vietnam, 2023-2024. ................................................................................................................................ 39 Figure 20. Farmers’ awareness on carbon market (in percent) by key concepts in select provinces in Vietnam, 2024. ........................................................................................................................... 40 v Acronyms 1M5R 1 Must, 5 Reductions 3G3T 3 reductions, 3 increases AFOLU Agriculture, forestry and other land use AMIA Adaptation and Mitigation Initiative in Agriculture AWD Alternate Wetting and Drying BAAC Bank of Agriculture and Agricultural Cooperatives BAU business-as-usual BPI Bank of the Philippine Islands BSP Bangko Sentral ng Pilipinas CCA Climate Change Act CCC Climate Change Commission CDM Clean Development Mechanism CO2e carbon dioxide equivalent COP 26 26th Conference of the Parties to the UNFCCC on Climate Change CPD Crop Production Department CRAO Climate Resilient Agriculture Office DA Department of Agriculture DCC Department of Climate Change DCCE Department of Climate Change and Environment DENR Department of Environment and Natural Resources DOAE Department of Agricultural Extension DOE Department of Energy DOTr Department of Transportation ERPA Emission Reduction Payment Agreement ESG Environment, Social, and Governance FPCF Forest Carbon Partnership Fund GAP good agricultural practices GCF Green Climate Fund GHG greenhouse gas GIZ German Agency for International Cooperation ha hectare ICD International Cooperation Department IA irrigator association IPCC Intergovernmental Panel on Climate Change IRRI International Rice Research Institute vi ITMO Internationally Transferred Mitigation Outcomes JCM Joint Crediting Mechanism LEAF Lowering Emissions by Accelerating Forest Finance LoA Letter of Authorization LT-LEDS Long-Term Low Greenhouse Gas Emission Development Strategy LTS Long-Term Strategies LULUCF Land Use, Land-Use Change, and Forestry MAE Ministry of Agriculture and Environment MARD Ministry of Agriculture and Rural Development MOAC Ministry of Agriculture and Cooperatives MOF Ministry of Finance MONRE Ministry of Natural Resources and Environment MOPA Market-Oriented Payment Agreement MRV Measurement, reporting, and verification Mt Metric ton NAMA Nationally Appropriate Mitigation Action NCCAP Philippine National Climate Change Action Plan NCCC (Thailand) National Committee on Climate Change NCCC (Vietnam) National Climate Change Committee NDA National Designated Authority NDC nationally determined contribution NDCIP Implementation Plan for the Republic of the Philippines Nationally Determined Contribution NIA National Irrigation Administration NTP National Target Program OAE Office of Agriculture Economics OIMP other international mitigation purpose PAC Provincial Agriculture Center PACM Paris Agreement Crediting Mechanism PGHGIMRS Philippine Greenhouse Gas Inventory Management and Reporting System PhilRice Philippine Rice Research Institute PMR Partnership for Market Preparedness PPD Plant Protection Department PPPD Plant Production and Protection Department PSA Philippine Statistics Authority Q-GAP Thailand's Good Agricultural Practices RBCF Results-based climate finance vii RCM Rice Crop Manager RD Rice Department RiceMoRe Rice activity monitoring and reporting system SCALE Scaling Climate Action through Low Emissions SEARCA Southeast Asian Regional Center for Graduate Study and Research in Agriculture SNV The Netherlands International Development Agency SPAR6C Supporting Preparedness for Article 6 Cooperation SRI System of Rice Intensification SRP Sustainable Rice Platform TCAF Transformative Carbon Asset Facility TGO Thailand Greenhouse Gas Management Organization T-VER Thailand Voluntary Emission Reduction TVER Thailand Verified Emission Reduction TWG Technical Working Group UNFCCC United Nations Framework Convention on Climate Change USD United States Dollars VCM Voluntary carbon market VCS Verified Carbon Standard VCU Verified Carbon Unit 1 1. Introduction The Philippines, Thailand, and Vietnam are parties to the United Nations Framework Convention on Climate Change (UNFCCC) and signatories to the Paris Agreement. This means commitment to addressing climate change by implementing measures to reduce greenhouse gas (GHG) emissions and adapt to its impacts. At the 26th Conference of the Parties to the UNFCCC on Climate Change (COP 26) in 2021, all three countries, recognizing their vulnerability to climate change, set ambitious nationally determined contributions (NDC) targets. The Philippines aims to reduce its cumulative GHG emissions by 75% (2.71% unconditional; 72.29% conditional) from the business-as-usual (BAU) scenario by 2030 (Republic of the Philippines, 2021). Thailand updated its NDC by 30% up to 40% from the projected BAU level by 2030, announcing its ambitions to achieve carbon neutrality by 2050 and a net-zero GHG emission by 2065 (Office of Natural Resources and Environmental Policy and Planning, 2022a). Vietnam committed to a 15.8% unconditional contribution and a 43.5% conditional contribution, aiming to reduce its methane emissions by 30% by 2030, to achieve net zero emissions by 2050 (Government of Vietnam, 2022). Agriculture, forestry, and other land use (AFOLU) accounted for approximately 24% of the total global GHG emissions in 2010 (Intergovernmental Panel on Climate Change (IPCC) 2007, 2014 as cited by Aryal, 2022). Asia contributed the largest share, at 44%, with Southeast Asia contributing the most to the region (IPCC, 2014, as cited by Aryal, 2022). Among the agricultural commodities grown, rice has been identified as one of the major contributors to GHG emissions, constituting around 10% of the global agricultural GHG emissions (Mirzabaev et al., 2024) and contributing 7% of the global anthropogenic methane emissions annually (GMI, 2021). In Southeast Asia, rice production accounts for 10% to 20% of GHG emissions (Earth Security Partnerships, 2019, as cited by Mirzabaev et al., 2024). This is primarily a result of methane emissions from the anaerobic decay of organic material in continuously flooded rice paddies. Due to methane's shorter atmospheric lifespan, reducing its emissions can quickly and substantially slow global warming—crucial for preventing temperature increases beyond 1.5°C to 2.0°C in the next two decades (Global Methane Hub, 2024). Notably, Vietnam has included methane reduction in rice cultivation in its NDC under the Paris Agreement, and Thailand and the Philippines have incorporated similar measures in their updated NDCs (Mirzabaev et al, 2024). Mirzabaev et al. (2024) proposed policy measures that can facilitate the promotion of methane-reducing agronomic practices and circular economy approaches for post-harvest rice straw valorization in Southeast Asia. These include the development of (1) robust regulatory frameworks for carbon abatement by facilitating carbon markets, aligning voluntary and compliance markets, and promoting water savings; and (2) carbon market infrastructure through roadmaps and aggregation models, carbon removal certification, and Measurement, Reporting, and Verification (MRV), and domestic demand creation and blended finance. Other policy measures include the development of integrated, coherent circular economy policies, capacity building and training, as well as providing farmers with incentives and financial support. In relation to the above, this report assesses the policies, carbon initiatives, and institutional readiness of the Philippines, Thailand, and Vietnam for a just low-carbon transition in their rice production systems, with a focus on methane reduction initiatives. 2 2. Objectives The objective of this stocktaking report is to provide an overview of policy mechanisms to promote private and public sector participation in implementing GHG reduction measures in rice cultivation. This was addressed by reviewing the current landscape of regulatory frameworks and other related elements applicable to the rice sector in the Philippines, Thailand, and Vietnam. Additionally, existing regulations and stakeholder networks were mapped to identify entry points to facilitate the development and implementation of policies and programs for the rice carbon credit market. 3. Nationally determined contributions under the Paris Agreement:………… international frameworks for promoting climate change mitigation in the rice systems International frameworks have significant roles in promoting climate change mitigation. It enables coordinated global action, facilitating the sharing of knowledge, resources, and strategies for mitigating climate change across different regions. As such, it ensures that rice- growing countries are aligned in their efforts. The following are among the international frameworks that have been instrumental in the evolution of carbon mitigation in rice in Southeast Asia. 3.1 The Clean Development Mechanism In 2011, the Clean Development Mechanism (CDM) (2006-2020) of the 1997 Kyoto Protocol introduced the Approved Methodology for Small- scale projects — Type III, Subcategory AU (AMS- AU.III) methodology for generating carbon credit through adjusted water management techniques, including Alternate Wetting and Drying (AWD). The AMS-AU.III CDM methodology attracted private investments towards carbon crediting projects in the rice sector. However, this methodology was later deactivated in 2023 due to insufficient guidelines for field stratification, a lack of consideration for accounting and monitoring changes in nitrous oxide emissions and soil organic carbon stocks, and the absence of standardized guidance for measuring methane (Verra, 2023). Before its deactivation, 37 projects using the AMS-III.AU methodology, all based in China, were registered under the Verified Carbon Standard (VCS) Program. Of these, 25 projects generated a cumulative of 4.56 million verified carbon units (VCUs). However, in 2024, all 37 projects were later rejected and sanctioned due to inadequate demonstration of additionality, classification as small-scale projects, overstatement of project areas, and insufficient evidence to support the implementation of their baseline and project scenarios (Verra, 2024). In 2025, Verra released a new rice cultivation methodology known as the Verified Carbon Standard (VCS) Methodology VM0051 Improved Management in Rice Production Systems, v1.0. (VM0051), replacing the CDM AMS-III.AU (Verra, 2025a). The VM0051 addresses the reduction of methane, nitrous oxide, and carbon dioxide. Furthermore, it is not limited to water management techniques, such as AWD, but also encompasses other farming practices, including the use of methanotrophic bacteria, low-emission rice varieties, and optimal nitrogen fertilizer use. Water management techniques showed potential for generating revenue from carbon credits. However, actual success has been limited due to the limited number of projects developed, resulting in the underutilization of the mitigation potential of the rice sector. Still, the CDM experience offered valuable insights 3 into future carbon mitigation efforts in rice farming. For example, by using adjusted water management methods, rice farmers can offset up to 4 tons of carbon dioxide equivalent (CO2e)/hectare (ha) per season. However, the financial incentive remains minimal. In 2019, the average price of a sustainable agriculture carbon credit was 12.52 USD/ton, although this price was not specific to rice. This translates to a modest seasonal payment of around 50.08 USD for farmers in Southeast Asia, which represents only about 10% of their total seasonal operational costs. This payment is often too low to motivate farmers to alter their practices due to the associated risks (World Bank, 2021, as cited by Mirzabaev et al., 2024). Consequently, it is essential to recognize the disparity between the number of farmers who could theoretically adopt AWD and those for whom it is financially viable. This gap presents both a challenge and an opportunity for expanding sustainable practices in rice farming. 3.2 The Paris Agreement The Paris Agreement, signed in 2015, is a pivotal international treaty aimed at combating climate change by keeping the global temperature increase below 2°C, ideally limiting it to 1.5°C above pre-industrial levels. Article 6 of the agreement is crucial as it establishes a framework for collaboration among countries in achieving their NDCs. Article 6 sets the foundation for a sustainable development mechanism that focuses on both emission reductions and promotion of sustainable development and environmental integrity (Mirzabaev et al., 2024). Article 6.2 Article 6.2 is a key component of the Paris Agreement, establishing a framework for voluntary cooperation between countries to achieve their climate goals. These arrangements are officially referred to as “cooperative approaches”. The primary function of Article 6.2 is to provide the legal basis and guidance for countries (called parties) to cooperate voluntarily in implementing their NDCs. Article 6.2 of the Paris Agreement enables a decentralized mechanism for countries to form bilateral cooperation on generating Internationally Transferred Mitigation Outcomes (ITMO). These ITMOs represent 1 ton CO2e removed or reduced from the atmosphere. Under this mechanism, often between a developed and a developing country, the two parties decide on the criteria that constitute the ITMO, as long as it meets the basic criteria for transparency, additionality, and actual carbon credits. Article 6.2 requires corresponding adjustments to be applied by the country that transfers the ITMOs (the host country) and the purchasing country that uses the ITMOs towards its NDC target. Corresponding adjustments are crucial for preventing global GHG emissions from increasing as a result of transfers by adjusting each country’s emissions balance. An example is the Joint Crediting Mechanism (JCM) of Japan, which is a significant driver of carbon project development in Southeast Asia, with emerging investments in the rice sector expected in 2025. Under the JCM, Japan offers developing countries Japanese low-carbon technologies, products, systems, services, and infrastructure, thereby supporting sustainable development, including reductions in GHG emissions in those countries. The credits generated from these outcomes are shared between the two nations. For private JCM, credits are awarded to business operators who use private funds, without relying on government funding. The Paris Agreement Crediting Mechanism Article 6.4, also known as the Paris Agreement Crediting Mechanism (PACM), is a centralized, international carbon crediting mechanism established under the Paris Agreement. The PACM is established as the successor to the 4 CDM under the Kyoto Protocol, incorporating lessons learned from the CDM’s operation. Eligible CDM projects that were registered after 2013 may have the possibility of transitioning into the Article 6.4 mechanism. The carbon credits issued through the PACM are referred to as Article 6.4 Emission Reductions (A6.4 ERs). For A6.4ERs to be used by another country towards its NDC, or for other international mitigation purposes (OIMP) such as CORSIA, they must first be authorized by the host country. If authorized, these A6.4ERs become ITMOs. A6.4ERs that are issued but not authorized for use towards an NDC or OIMP are referred to as Mitigation Contribution A6.4 Emission Reductions (MCA6.4ERs). Since 2020, carbon registries, methodologies, projects, and third-party verification bodies have been transitioning to the PACM. The Supervisory Body of Article 6.4 Mechanism has released new and stricter guidelines for demonstrating additionality, which will guide the generation of high-quality Article 6.4 emission reductions (A6.4ERs) and unlock higher climate finance. 4. Policy reviews by country This Section presents the relevant climate change mitigation policies in the Southeast Asian countries, the Philippines, Thailand, and Vietnam. It presents broader national policies, which are then funneled to the agricultural sector, with a particular focus on the rice sector. 4.1 Philippines The introduction of climate change in Philippine policies began with the approval of the Climate Change Act in 2009. Since then, the country has developed comprehensive action plans, actively participated in global climate negotiations, and committed to climate adaptation and mitigation in line with international agreements, such as the Paris Agreement. The country's policies have consistently recognized the urgent need to address climate change, given its vulnerability to natural disasters and extreme weather events. The following are brief descriptions of relevant policies for the low-carbon transition of the Philippines: 1. The Climate Change Act 2009 (Republic Act 9729) mainstreams climate change into government policy formulations, outlining its strategy framework and programs for climate action, and establishing the Climate Change Commission (CCC) in 2009 (GoP, 2009). The CCC serves as the Philippines’ policymaking and coordinating agency, responsible for monitoring and evaluating the government's programs and action plans related to climate change. 2. The Implementation Plan for the Republic of the Philippines Nationally Determined Contribution (NDCIP) 2020–2030 presents the strategies, initiatives, and interventions to achieve the goal of GHG emissions reduction across different sectors of the country. This document outlines the MRV system and financing processes, as well as the stakeholders involved in the NDC implementation. For the agricultural sector, the key interventions identified are the adoption of AWD, improved cropland management, the use of renewable energy, reduced urea application, and zero biomass burning (CCC & DENR, 2023). 3. The Philippine National Climate Change Action Plan (NCCAP) 2011–2028 provides the climate change adaptation and mitigation strategies, priority areas, and intended outcomes, including food security. The plan intends to produce outputs such as (i) enhanced knowledge on the climate change vulnerability of the agricultural and fisheries sector, (ii) climate-sensitive agriculture and fisheries polices, plans, and programs, (iii) enhanced capacity for climate change adaptation and disaster risk reduction of government, farming, and fishing communities and industry, and (iv) enhanced social 5 protection for farming and fishing communities (CCC, n.d.) 4. Executive Order No. 174, series of 2014: Institutionalizing the Philippine Greenhouse Gas Inventory Management and Reporting System (PGHGIMRS) enables the country to transition towards a climate-resilient pathway. The CCC leads the implementation and is responsible for providing direction and guidance on the accounting and reporting of GHG emissions from key source sectors, developing a system for archiving, reporting, monitoring, and evaluating GHG inventories, and providing capacity building in conducting GHG inventories. Other national agencies to lead sectoral GHG inventories are the Department of Agriculture (DA) and Philippine Statistics Authority (PSA) for the agriculture sector; Department of Energy (DOE) for the energy sector; Department of Environment and Natural Resources (DENR) for the waste, industrial processes, and the land-use and forestry sector; and Department of Transportation (DOTr) for the transport sector (GoP, 2014). 5. The Philippine Development Plan (2023– 2028), Chapter 15: Accelerate Climate Action and Strengthen Disaster Resilience, envisions that by 2028, communities, institutions, and the natural and built environment in the Philippines will be more resilient to the impacts of natural hazards and climate change. Specifically, Outcome 3: Low carbon economy transition enables specifies strategies such as implementing the NDC policies and measures, bolstering private sector investments in green development, ensuring just transition of workers affected by the structural changes toward a greener, more sustainable, and low-carbon economy, and expanding market opportunities for low-carbon technologies and products. Agricultural Sector In the NDCIP, the key interventions identified for the agricultural sector include the adoption of AWD, improved cropland management, the use of renewable energy, reduced urea application, and zero biomass burning. Specifically, NDCIP aims to achieve 100% adoption of AWD, improved cropland management, and renewable energy for flood control and water management systems in irrigated paddy rice areas. The estimated GHG reduction from this intervention is 62.81 MtCO2e for an area of 3.21 million hectares. Other targets include a 50% reduction in urea application through precision agriculture and improved cropland management, as well as zero biomass burning, which can lead to estimated emission reductions of 0.55 MtCO2e and 2.02 MtCO2e, respectively (GoP, 2022). For the agricultural sector, specifically the rice subsector, the DA has been the lead national government agency for climate adaptation and mitigation initiatives. While the policies and programs are more focused on climate adaptation (i.e., improved resiliency), some of the promoted technologies (e.g., AWD, sustainable soil management) contribute to GHG emission reductions. The following are among the central policies and programs centered on climate-resiliency in rice: 1. The Masagana Rice Industry Development Program (MRIDP), launched in 2023, aims to revitalize the Philippines’ rice sector and achieve a rice self- sufficiency level of 97.4% by 2028. The Program integrates strategic components including climate change adaptation, farm clustering and consolidation, value chain development, and digital transformation. While MRIDP is focused on climate adaptation, Memorandum Circular No. 25, series of 2024: Guidelines for the scaling of rice technologies under the National Rice Program highlights the need for 6 scaling of the System of Rice Intensification (SRI) technology (DA, 2024). While SRI is primarily focused on improving productivity, it promotes water conservation through AWD and reduced use of chemical inputs, contributing to efforts to reduce methane emissions in rice farms. 2. The Philippine Rice Industry Roadmap (PRIR) 2019-2030 is a strategic plan that envisions a “rice-secure Philippines” where rice is available, affordable, accessible, safe, and nutritious for all Filipinos. Its component, Enhance Resiliency to Disasters and Climate Risks, involves promoting climate-resilient farming practices and infrastructure. Among the technologies it promotes that contribute to GHG emission reduction are rice straw management and sustainable soil health management, among others. 3. The Adaptation and Mitigation Initiative in Agriculture (AMIA) is the flagship climate program of the DA, aiming to empower climate-vulnerable farmers and fisherfolk through the promotion of climate-resilient agriculture practices. AMIA indirectly supports GHG mitigation by promoting sustainable land and water management strategies, low-emission rice production technologies, and community-based climate risk assessments. AMIA is led by the Climate Resilient Agriculture Office (CRAO), an agency created in 2020 through DA Memorandum Circular Number 04 (DA, 2020). CRAO is responsible for providing strategic direction and oversight in mobilizing resources and capacities to achieve climate-resiliency in agriculture. However, CRAO is an ad hoc institution with no stable budget (TRTA Consultant, 2024). 4.2 Thailand The climate change agenda was formally introduced into Thailand’s policies and programs in the early 2000s, with significant steps taken starting in 2007. Thailand has progressively enhanced its NDC and established long-term strategies, creating a robust framework for climate action. Thailand has set increasingly ambitious targets that underpin its policy framework: • Near-Term target (2030 NDC): Thailand aims for an unconditional emissions reduction of 30% by 2030 from the projected BAU level. This target can be increased to 40% (conditional target), subject to adequate and enhanced access to international support, including finance, technology, and capacity building. The NDC target covers the entire economy, including the agriculture sector. • Long-Term Strategy (LT-LEDS): The country aims to achieve carbon neutrality by 2050 and net-zero greenhouse gas (GHG) emissions by 2065. LT-LEDS reflects its policy roadmap to support the attainment of its NDC (Office of Natural Resources and Environmental Policy and Planning, 2022b). The LT-LEDS outlines specific mitigation actions across the energy, transport, agriculture, and waste management sectors, which are also covered in the NDC. This integration ensures that the long-term vision for low- emission development is directly linked to the short-term commitments made in the NDCs. Agricultural mitigation actions in the LT-LEDS prioritize practices that enhance climate resilience, resource efficiency, and productivity, including improved manure and waste management, efficient rice and water use practices, smart farming, renewable energy adoption, and the use of energy-efficient equipment. 7 • Future Ambition (NDC 3.0): The forthcoming NDC 3.0 (for the 2031–2035 period) is expected to transition to an absolute emissions reduction target, aiming for a 47% reduction in net GHG emissions (135.2 MtCO2e reduction) compared to the 2019 baseline (287.2 MtCO2e). Climate Mitigation is governed by institutional roles and emerging legislation: • Governance: The National Committee on Climate Change (NCCC) provides strategic direction and policy oversight. The Department of Climate Change and Environment (DCCE) serves as the National Designated Authority (NDA) for Article 6 cooperation, responsible for high-level policy coordination, bilateral agreements, and issuing the Letter of Authorization (LoA) for international credit transfers. The Thailand Greenhouse Gas Management Organization (TGO) acts as the technical arm, operating the registry and administering the Thailand Voluntary Emission Reduction (T-VER) program. • NDC Action Plan on Mitigation (2021– 2030): The NDC Action Plan (dated December 2567 B.E./2024 C.E.) serves as the framework for guiding mitigation operations and measures across various sectors to achieve Thailand's NDC goals. The NDC Action Plan allocates a specific reduction target to the agricultural sector, aiming for a 4.1 MtCO2e reduction by 2030. This sector contributes to the overall targeted reduction of 184.8 MtCO2e by 2030. Measures listed in the NDC Action Plan that contribute to the unconditional 30% reduction goal include specific actions related to rice cultivation and farming practices: o AWD Rice Cultivation: The plan specifically includes measures for implementing AWD rice cultivation, targeting a reduction value of 1.0 MtCO2e by 2030. o Reduction of Chemical Fertilizers: Measures to reduce the use of chemical fertilizers are included, aimed at reducing nitrous oxide emissions, with a target value of 0.1 MtCO2e by 2030. The NDC target has been integrated into the National Strategy (2018–2037) to ensure a long- term continuity of the issue alongside other. economic and social considerations. Furthermore, the country’s policies on low- carbon emissions are reflected in various levels of its national plans and strategies. Table 1 summarizes how these national plans and strategies support Thailand’s low-emission transition. 8 Table 1: Thailand’s national plans and strategies towards low-emission transition. National Plan Targets to Support Thailand’s Low-Emission Transition 1st level National Strategy (2018–2037) Strategy 5 of the plan addresses climate change, focusing on promoting sustainable, climate- friendly society growth and creating eco-friendly water, energy, and agricultural security. It emphasizes mitigating GHG emissions, developing agricultural and food security in terms of quantity, quality, pricing, and access at both national and community levels 2nd level Master Plan under National Strategy (2023 – 2037) For agriculture and a low-carbon transition, the plan promotes agriculture that leverages technology and innovation to increase productivity, reduce costs, and minimize environmental impact, while supporting sustainable agriculture and building resilience to the risks associated with changing weather patterns. The 13th National Economic and Social Development Plan (2023– 2027) This plan emphasizes prioritizing eco-friendly farming practices, reducing chemical use, improving efficiency to support low-emission farming, and supporting the development of carbon credit systems to incentivize farmers to adopt practices that reduce GHG emissions, contributing to the low-carbon economy goal. 3rd level Climate Change Master Plan (2015– 2050) This plan includes elements for GHG reduction and low-carbon growth in the agricultural sector, focusing on low-emission practices with co-benefits. It develops efficient, cost- effective techniques for reducing GHG in rice production and provides incentives for medium and small-scale farmers to adopt goof agricultural practices (GAP) or other sustainable standards. Financial and fiscal measures are employed to encourage these farmers to transition to climate-friendly practices that align with recognized standards. In terms of legislation, Thailand is in the process of enacting its Climate Change Act (CCA). Its goal is to transition toward a low-carbon economy and society with net-zero GHG emissions. It establishes comprehensive measures and economic tools to effectively reduce GHG in alignment with public needs and encompassing the entire cycle of key economic activities, fostering environmental conservation, reducing GHG emissions, and promoting sustainable economic activities. The CCA is poised to become the cornerstone of Thailand’s climate governance, establishing the legal basis for domestic mitigation instruments that directly intersect with international mechanisms relevant to the agricultural sector. The proposed legislation will fundamentally reshape the national carbon pricing environment by introducing mandatory market instruments: o Emissions Trading Scheme (ETS): The CCA is expected to establish a mandatory domestic ETS. o Carbon Tax: The CCA is also anticipated to introduce a carbon tax. o Climate Fund: The CCA proposes the establishment of a national Climate Change Fund. This fund can be prioritized to support foundational mitigation activities essential for achieving the unconditional portion of Thailand's NDC. The CCA provides the enabling regulatory foundation (through carbon markets and international cooperation) for mitigation in the agricultural sector, which is included in Thailand's updated NDC and LT-LEDS. These instruments create critical tension regarding whether low-cost mitigation actions, potentially in the agriculture sector, should be used for 9 domestic compliance or sold internationally as Internationally Transferred Mitigation Outcomes (ITMOs). The introduction of the domestic ETS under the CCA means that mitigation actions like enhanced rice cultivation must be strategically managed. It could either contribute to domestic efforts needed for the unconditional NDC target or, if deemed additional, be authorized by DCCE for transfer as ITMOs under Article 6 mechanisms, such as those established via bilateral agreements. Agricultural Sector The Ministry of Agriculture and Cooperatives (MOAC) has established the Climate Change Action Plan for the Agriculture Sector (2023 – 2027) to ensure that Thailand’s agricultural sector is resilient and capable of adapting to climate change, based on data-driven approaches and favorable environmental conditions. The key indicators of this plan include: (1) 5% annual increase in the market value of carbon-neutral agricultural products, (2) a target reduction of 1 million tons of CO2 emissions from agricultural activities, and (3) the development of mechanisms allowing agricultural carbon credits to be traded on international markets. The plan also includes development goals that support the transition of rice cultivation to low-emission methods, particularly with the use of the AWD. The key details of how these development goals facilitate the transition to low-emission rice farming in Thailand are shown in Table 2. Table 2: Development goals in the Climate Change Action Plan for the Agriculture Sector (2023 – 2027) that support Thailand’s transition to low-emission rice farming. Development Goal Key Details Goal 1: Enhancing the adaptability of farmers and businesses throughout the agricultural supply chain. To enhance adaptation to climate through the promotion and support of AWD for rice cultivation in irrigated areas by promoting and supporting AWD for dry season rice cultivation in irrigated areas. Goal 2: Participation in reducing GHG emissions throughout the agricultural supply chain to mitigate long-term impacts of climate change. To support the production of environmentally friendly and low-carbon agricultural products that align with NDC and Long-Term Strategies (LTS) by promoting and supporting the reduction of GHG emissions from agricultural products, including the development of carbon credit market mechanisms for the agricultural sector to enhance incentives for adaptation and reduce GHG emissions. Goal 4: Enhancing Human Resource Capacity in the Agricultural Sector and Promoting Collaboration among Stakeholders to Address Climate Change Adaptation at All Levels. To strengthen the competencies of personnel that align with local contexts by promoting and supporting the upskilling and reskilling of farmers to acquire knowledge and practical training related to appropriate adaptation methods, such as planting alternative crops that use less water instead of rice, wetland rice cultivation, reducing heat stress in livestock, and fishing under changing storm conditions. This will involve collaboration with local educational institutions, alongside budget support to alleviate the limitations of government agencies with restricted personnel. Goal 5: Promoting and Advancing Climate Change Adaptation Efforts. To enhance integration with external agencies of the MOAC by promoting and supporting the buying and selling of carbon credits in the agricultural sector to enable widespread trading in both domestic and international markets. 10 4.3 Vietnam Climate change was officially introduced into Vietnam's policies in the early 2000s, with significant milestones in 2008 when the National Target Program to Respond to Climate Change was introduced. Key policy frameworks like the National Strategy for Climate Change (2022) and the National Green Growth Strategy (2021) further integrated climate change into Vietnam’s national development and economic planning. Vietnam is also committed to international climate efforts, participating in the Paris Agreement (2015) and updating its NDC to align with global climate goals. The following are brief descriptions of policies significant for the just low-carbon transition of Vietnam. 1. The National Target Program (NTP) to respond to climate change, approved in 2008, aims to develop feasible action plans for responding to climate change in the short-term and long-term such as attaining a low-carbon economy. The NTP includes programs for advancing rural development, development of rural roads, and promotion of climate-smart agriculture in rice cultivation. 2. The updated NDC (2022) advances the country’s commitment to reduce its national GHG emissions by increasing its unconditional and conditional contributions from 9% to 15%, and 27% to 43.5%, respectively. In this policy, Vietnam aims to achieve net-zero GHG emission by 2050. 3. The National Strategy for Climate Change until 2050 (Decision No. 896/QD-TTg dated July 26, 2022), approved in 2011, sets the targets to be achieved by 2050. Its goals include ensuring sustainable use of resources, disaster risk reduction from the climate change impacts, and promotion of a low-carbon economy while enhancing food and water security. The strategy specifies a total agricultural emission reduction goal of 64 MtCO2e by 2030, in contribution to the overall national reduction target of 43.5% to BAU. The Plan also aims to improve the involvement of government, empower communities, foster international collaboration, and direct funds for climate-related research and development. 4. The National Green Growth Strategy for 2021 – 2030 period, with a vision by 2050 (Decision No. 1658/QD-TTg dated October 01, 2021) aims to accelerate sustainable development in Vietnam by integrating green growth principles into its economic policies and development plans. The strategy targets a reduction in GHG emission intensity per unit of gross domestic product by at least 15% by 2030 and by at least 30% by 2050, compared to 2014 levels. Among its strategy is to develop modern, clean, organic and sustainable agriculture. 5. The Action Plan for Methane Emission Reduction by 2030 (Decision No. 942/QD- TTg dated August 5, 2022) identifies targets by 2030, ensuring that total methane emissions do not exceed 77.9 million tons of CO2e, reducing by at least 30% compared to the 2020 emission level, of which methane emissions from crop cultivation do not exceed 30.7 million tons of CO2e. The identified solution tasks related to crop cultivation includes: (i) developing and perfecting mechanisms and policies in which the agricultural sector has completed the Plan for Methane Emission Reduction in Agriculture by 2030; and (ii) implementing GHG emission reduction activities in the crop production sector such as investing in completing irrigation infrastructure to proactively reduce methane emissions in rice cultivation; developing and implementing a project converting inefficient rice land to rice- aquaculture land, high-economic efficiency 11 upland crops, reduce methane emissions and develop markets for new products in converted systems; developing and implementing a project to recycle agricultural waste and by-products, increasing carbon accumulation in the soil. The plan has high potential for implementation through cultivation solutions, infrastructure improvement, conversion of crop by-products, and agricultural by-product circulation. However, a problem is that it does not define a specific roadmap, and the the projects are built slowly except for the approved GHG emission reduction plan. Also, the limited resources for its implementation hinder the potential for emission reduction from implementing this plan. 6. The GHG emission reduction plan (including the methane emission reduction plan) for the agriculture and rural development sector to 2030, with a vision to 20501, with the goal of ensuring a total reduction in GHG emissions of 121.9 million tons of CO2e by 2030 (excluding GHG emission reduction from energy use in production), of which the agricultural sector (cultivation, livestock) reduces at least 42.85 million tons of CO2e, the forestry and land use sector reduces at least 79.1 million tons of CO2e; Total methane emissions do not exceed 45.9 million tons of CO2e, a 30% reduction compared to the 2020 emission level. This plan closely follows Decree 06/2022/ND- CP dated January 7, 2022 of the Government regulating GHG emission 1 Approved by the Ministry of Agriculture and Rural Development (MARD) in Decision No. 1693/QD-BNN-KHCN dated April 28, 2023 (now part of the Ministry of Agriculture and Environment [MAE], established March 1, 2025). mitigation and ozone layer protection; Decision 942/QD-TTg dated August 5, 2022 of the Prime Minister approving the Action Plan to reduce methane emissions by 2030 and the updated NDC report in 2020. This plan is an important basis for developing a roadmap in reducing methane emissions in crop cultivation. The solutions are detailed, with specific targets for each measure, and are supported by allocated resources from domestic investment sources and international support sources. However, determining a specific roadmap for the solutions is still limited, and the implementation has not been monitored over the years to serve as a basis for assessment and roadmap development. Agricultural Sector Agriculture is the second largest contributor to GHG emissions in Vietnam, accounting approximately 23% of total emissions in 2016. The unconditional NDC target allocated to agriculture in 2030 has been increased from 6.8 million ton CO2e in NDC 2020 to 12.4 million ton CO2e in NDC 2022 and the conditional NDC target for agriculture has also been increased from 25.8 million tons CO2e to 38.5 million tons CO2e in NDC 2022. Based on the GHG emission reduction plan, the priority solutions in crop cultivation to implement GHG emission reduction targets (including methane emissions) include: • Expanding the application of AWD technology, improved rice cultivation through SRI, 3 reductions, 3 increases (3R3I2), 1 Must, 5 Reductions (1M5R3), and 2 3R3I is also called 3G3T or 3 Giảm, 3 Tăng, which is the Vietnamese translation of 3 reductions, 3 increases. 3R3I means lowering the cost of irrigated rice systems by reducing the quantity of seeds, and the amount of nitrogen fertilizer and pesticides (3R) used while maintaining yield, improving farmer’s health and environmental protection (3I). 12 mid-season water withdrawal in rice cultivation can potentially reduce methane gas emissions by up to 4.7 tons CO2e/ha by 2030. The potential areas are: up to 200,000 ha with adequate infrastructure; up to 1 million ha with average infrastructure; and up to 1 million ha with poor infrastructure. • Expanding the rice cultivation area applying mid-season drainage technique in rice growing regions, the potential area can be up to 1 million ha, with the potential to reduce methane by up to 3.2 tons CO2e/ha. • Converting inefficient rice land to rice- aquaculture land (rice-fish, rice-shrimp) on inefficient rice growing areas, with the potential for aquaculture, with an area of up to 200 thousand ha, with the potential to reduce methane emissions by up to 6.54 tons CO2e/ha. • Converting inefficient rice land to upland cultivation on inefficient rice growing areas, with the ability to grow upland crops, short- term and long-term industrial crops, fruit trees, with a potential area of up to 200 thousand ha, with the potential to reduce methane gas up to 7.14 tons CO2e/ha. However, transitioning to low-carbon rice has associated costs. According to World Bank (2022), the investment cost estimates about 110 USD/ha for the low-case scenario, 515 USD/ha for medium-case scenario, and 3,890 USD/ha for the high-case or net-zero scenario by 2030. 3 1M5R is also called 1P5G or 1 Phải, 5 Giảm, which is the Vietnamese translation of 1 Must, 5 Reductions. 1M5R means “One must do (1M): use the verified rice seed; and Five Reductions (5Rs): reductions of the quantity of seed, fertilizer, water, pesticide usages and postharvest loss 5. Carbon initiatives in the agriculture sector by country The concept of carbon market originated from the United Nations Kyoto Protocol on climate change, adopted in 1997. According to the Kyoto Protocol, countries with excess emission rights are sold to or purchased by countries that emit more or less than their committed targets. This new commodity, GHG emission reduction/absorption certificates, has been among the prime mechanisms to mitigate climate change. This section presents carbon initiatives in the Philippines, Thailand, and Vietnam that may be instrumental in the advancement of the carbon market in Southeast Asia. 5.1 Philippines As of the time of writing, rice carbon projects in the Philippines are led by international private sector institutions from Japan through the JCM (See Section 3.2). For example, Green Carbon, Inc., a Japanese company specializing in nature- based carbon credits, has developed carbon market opportunities through the introduction of AWD. Currently, there are three ongoing projects in the provinces of Batangas, Bulacan, and Nueva Vizcaya. Notably, the project in Batangas— the first rice paddy project registered under JCM between Japan and the Philippines— aims to expand AWD implementation in 10,000 ha of irrigated rice fields within ten years. About 400,000 tons of carbon credits are expected to be generated from the said rice field area (Green Carbon, 2025). Similarly, the partnership between Kubota Corporation, Creattura Co., and Tokyo Gas has implemented the Joint Demonstration Project to Reduce Methane Emissions from Paddy Fields in the Philippines. The project offers comprehensive training to farmers, enhancing their agricultural practices through 13 proper seed selection, soil management, and AWD. Other objectives of the project include identifying challenges and risks associated with scaling AWD, increasing farmers' income, and collecting data for creating carbon credits (Kubota, 2024). Another AWD project through JCM is the collaboration between Yanmar and Faeger, in partnership with the Philippine Rice Research Institute (PhilRice). They have collaborated with Filipino farmers, municipal governments, and national agencies to introduce AWD, monitor field data, and design incentive mechanisms (Yanmar, 2025). In terms of monitoring GHG emissions, PhilRice and the Philippine Space Agency entered into a partnership in December 2024 to address agricultural drought in the Philippines (Business Mirror, 2024). Central to this effort is the installation of an eddy covariance flux tower at PhilRice in Nueva Ecija, which will measure carbon dioxide and methane emissions, as well as monitor energy and water vapor exchange between rice fields and the atmosphere. By integrating satellite-derived data with ground- based measurements, the project will enable more accurate tracking of GHG exchanges and support decision-making in rice production, GHG monitoring, and long-term environmental research (PhilRice, 2025). 5.2 Thailand This section highlights key carbon initiatives in Thailand aimed at reducing GHG emissions and promoting sustainable agricultural practices: • The Thailand Voluntary Emission Reduction (T-VER) Program is Thailand's domestic carbon crediting mechanism designed to encourage non-mandatory GHG mitigation efforts across various sectors, aiming at reducing GHG emissions through voluntary actions. It provides a framework for organizations and individuals to implement projects that reduce emissions and earn carbon credits. The verified emission reductions generated under this scheme are known as TVERs (Thailand Verified Emission Reductions). These emission reduction credits can be traded or used to offset emissions. In 2022, to align with global expectations, Thailand introduced the Premium T-VER (premium T-VER) standard, which is an upgraded version explicitly designed to meet international benchmarks. For water management improvement projects, farmers are required to have equipment or tools capable of managing water effectively. Training and technical support must be provided to participating farmers, particularly in areas such as field preparation, water supply, drainage, and fertilizer use. Farmers must also present documentation as evidence of these activities. The project’s activities must not cause agricultural yields to drop by more than 5%, as evaluated by experts and/or based on comparable regional data or similar publications. If agricultural yields decrease by more than 5% but not by more than 15%, the project developer can submit reasonable additional documentation to explain the situation and prevent the reduction from being considered agricultural leakage. • Development of the Article 6 Operations Manual. The DCCE is currently developing Thailand's Article 6 Operations Manual as part of the "Supporting Preparedness for Article 6 Cooperation" (SPAR6C) program. This initiative is crucial for Thailand's engagement with international carbon markets and aims to facilitate the implementation of its NDC under the Paris Agreement. The manual aims to guide government entities and project developers on navigating the project cycle associated with Article 6 activities. • The Thai Rice Nationally Appropriate Mitigation Action (NAMA) Project (2018- 2024) is a pilot project aimed at reducing 14 GHG in rice farming. It helps the Thai rice sector transition to low-methane rice production, as rice farming accounts for nearly 55% of agricultural emissions. The project was implemented in six target provinces in the central region: Chainat, Angthong, Pathum Thani, Singburi, Ayutthaya, and Suphanburi. It covered a harvested rice area of 0.91 million ha. It focused on implementing four mitigation technologies, namely land laser levelling technology, AWD, site-specific soil and nutrient management, and straw and stubble management (Office of Natural Resources and Environmental Policy and Planning, 2022b). • The Sustainable Rice Platform (SRP) is a coalition of multiple stakeholders formed in 2011, jointly led by the United Nations Environment Programme and the International Rice Research Institute (IRRI). Its goal is to promote sustainable practices in rice farming by implementing a voluntary standard that covers the environmental, social, and economic dimensions of rice production. These initiatives include reducing GHG emissions in rice farming. Thailand has actively adopted the SRP standards to improve its rice value chain. A pilot implementation took place in Ubon Ratchathani province from 2013 to 2017, focusing on knowledge transfer regarding sustainable rice production practices (Mungkung et al., 2022). The Thai government has introduced its own sustainable rice standard, TAS 4408-2022, which is closely aligned with the SRP guidelines. This standard seeks to improve production efficiency, guarantee food safety, and encourage environmentally sustainable practices among Thai farmers. (National Bureau of Agricultural Commodity and Food Standards, 2022). Sustainability is also becoming an essential factor for rice consumers in Thailand. SRP conducted a survey and found that 72% of its respondents have bought sustainable food. The survey also revealed that a substantial 84% of respondents are willing to pay a 5-10% premium for sustainable rice, with just 3% entirely opposed to any price increase. Buyers in the Northeast show a greater preference for sustainable rice, with 58% reporting past purchases. (SRP, 2024). • Corporate Sustainability Initiatives. Major corporations such as ThaiBev and CP Group have aligned their sustainability initiatives with Thailand's carbon reduction goals, particularly in rice cultivation. ThaiBev's Sustainable Agriculture Program promotes responsible sourcing and sustainable rice farming by engaging suppliers and local farmers in practices like water efficiency and soil fertility management, ultimately reducing GHG emissions through improved water and pesticide controls. CP Group, through its Sustainable Rice Initiative, partners with government and international entities to advance low-emission rice farming practices, including the AWD technique, which reduces methane emissions. 15 5.3 Vietnam In Vietnam, various domestic organizations and enterprises have engaged in low-carbon growth initiatives through CDM, NAMA, and Japan’s JCM, as well as other voluntary carbon credit exchange mechanisms under the Vietnam– Japan cooperation framework. As of December 2023, Vietnam has had 258 projects registered under the CDM and 13 projects registered under the CDM Programs of Action. Vietnam ranks fourth in the world in terms of the number of registered CDM projects, with a total potential to reduce about 140 million tons of CO2e (Ministry of Natural Resources and Environment, 2022). Table 3. Summary of carbon credit programs/projects according to standards in Vietnam. Mechanisms Registered project number Emission Reduction Certification Average emission reduction/project UNFCCC CDM 332 31 million tons 93,000 VERRA (Voluntary Carbon Market) 33 2.7 million tons CO2e/year 81,000 Gold Standard-GS (Voluntary Carbon Market) 67 7.6 million tons CO2e/year 110,000 Joint Crediting Mechanism (JCM), Japan (Bilateral Crediting Mechanism) 14 8 certified projects equivalent to 4,415 JCM credits N/A Results-Based Payments/Climate Finance • Forest Carbon Partnership Fund (FPCF) for REDD+ program: 10.3 million tons CO2e = 51.5 million USD (Under implementation in 6 provinces of North Central). • The Lowering Emissions by Accelerating Forest Finance (LEAF) for REDD+ program: Proposed 6 million tons CO2e equivalent to at least 60 million USD (at least 10 USD/ton) (ART-TREES, independent appraisal and verification process). Expected to be paid in 2026. • Green Climate Fund (GCF) for REDD+ program: expected to receive 65 million USD. • Carbon Asset Transfer Fund expected for the 1 million ha high-quality, low-emission rice program in the Mekong Delta. Includes 2 phases: Phase 1 applies the Emission Reduction Payment Agreements (ERPA) mechanism, and Phase 2 applies the Market-Oriented Payment Agreement (MOPA) mechanism with a maximum funding source of 40 million USD. Source: Synthesized from the World Bank and the Ministry of Agriculture and Rural Development Table 3 Presents the summary of carbon credit programs and projects according to standards. To participate in the carbon market, Vietnam can apply two types of traded goods. First is the GHG quotas, in which the government will allocate quotas to enterprises participating in the implementation of the GHG emission reduction plan, according to the NDC (2166 GHG facilities in Decision 13/2024/QD-TTg dated August 13, 2024), providing them the right 16 to emit within the quota they own. If they emit more, they will have to buy quotas from other enterprises. However, the price of carbon quotas in the European Union and the United States markets is often remarkably high. Second is voluntary carbon credits, in which businesses invest in emission-reduction technologies, such as afforestation. Regulatory agencies will approve them, have their emissions reductions assessed, and receive credits. Because these credits are voluntary, their prices are currently low. The price starts at 1 USD/ton, but can reach 15 USD/ton, depending on the type of technology and the level of investment (Vietnam Review of Finance, 2024). Since Vietnam does not have a carbon credit certification unit that meets international standards, the transaction, purchase, sale, and transfer of carbon credits from the construction of registration dossiers to project approval must go through foreign contacts. This causes difficulties for forest owners in determining carbon ownership and carbon transfer transactions. For the rice industry, Vietnam has projects on payment mechanisms based on emission reduction results : 1. The AgResults project, implemented in Thai Binh province, has attracted the private sector to participate in the award mechanism based on emission reduction results (Figure 1). The project has a total budget of 8 million USD, implemented from 2017 to 2020. The project attracted 25 enterprises, called participating units. In phase 1, 11 participating units were selected to win prizes of 20 to 50 thousand USD. In phase 2, four enterprises were awarded 200 to 740 thousand USD. In addition, 85 cooperatives and about 47 thousand households also participated. Examining the project's expenditure structure, the total prize value is equivalent to 3.3 million USD and the cost of hiring supervision, evaluation and appraisal is 4.7 million USD. The MRV costs accounted for a very high proportion in this project (Figure 1). 2. The project, Transforming the rice value chain to respond to climate change and achieve sustainable development in the Mekong Delta, implemented by Netherlands International Development Agency (SNV) in the An Giang, Dong Thap, and Kien Giang provinces in Mekong Delta. The objectives of the project include: (i) transition to a low-carbon/green growth economy and climate-resilient food systems in the MD; (ii) transition to low- carbon rice production through improving the enabling framework for results-based finance to encourage private sector innovation and investment in key rice areas in the MD; (iii) improve market linkages; (iv) lead policy dialogues to support the development of an enabling framework for scaling up climate-smart technologies to major rice production areas in the MD; (v) mitigate climate change impacts through a smart combination of crop adaptation and large-scale mitigation measures, focusing primarily on vulnerability and inclusiveness; and (vi) develop and pilot carbon credit certification to contribute to Vietnam’s NDC and create a distribution mechanism for selling certified emission reductions/voluntary emission certificates. Interested enterprises will submit proposals for sustainable rice production techniques that bring higher economic efficiency while reducing GHG emissions, environmental and social values; and present the enterprise's capacity in testing and expanding the application of technologies on a large production scale in the Mekong Delta. 3. In 2025, Green Carbon submitted the project Alternate Wetting and Drying in Rice Cultivation in An Giang Province, 17 Vietnam to the VCS program. The project follows the recently released VM0051 methodology (See Section 3.1.). Green Carbon along with its local partners has held training sessions and meetings with farmers to enhance their knowledge on AWD benefits, followed by AWD pipes installation in the registered farmers’ farms. The expected annual average emission reductions of the project area are 590,682 tCO2e, with a total GHG emission reduction of 24,134,780 tCO2e (Verra, 2025b). Source: Compiled from AgResults project implementation results report, 2023 Figure 1. Project overview of AgResults. There are also other initiatives related to reducing GHG emissions such as: • The Integrated Sustainable Landscape Management in Mekong Delta of Vietnam, implemented by the Food and Agriculture Organization is a Global Environment Facility-funded project (77.95 million USD) for transforming rice- dominated landscapes in Mekong Delta towards sustainable, adaptive, and resilient models of production to reduce GHG emissions, improve food security, and alleviate poverty. • The World Bank provides funding for Vietnam’s 1MHa project. • Vietnam also participated in World Banks’ Partnership for Market Preparedness (PMR) program from 2011-2021 receiving a funding of 3.35 million USD to finance its market readiness proposal—outlining the plans to establish the country’s own Carbon Market. It is set to move forward to the Partnerships for Market Implementation, the next phase of the program. 18 6. Institutional readiness for just low-carbon transition in rice production systems Institutional readiness in the context of a low- carbon transition refers to the capacity and preparedness of institutions to effectively support and implement measures that reduce carbon emissions. Regarding rice sector in the carbon market, it is the presence of clear and supportive government policies and frameworks, stakeholder engagement, technical capacity on GHG emission reduction practices, capacity to MRV changes in practices that reduce emissions, and financing low-emission rice projects. 6.1 Philippines In the Philippines, institutional readiness to a just low-carbon transition in rice production systems is the degree of preparedness within key institutions, policies, and systems for adopting low-carbon strategies in rice production. The following sections share information, as well as challenges and opportunities for Philippines to transition to just- low carbon. 6.1.1. Regulatory and legal framework As of writing, the Philippines does not have a fully integrated regulatory and legal framework for a just low-carbon transition carbon market. However, the country has established key policies (See Section 4.1) related to climate change, carbon markets, and sustainable development that can be built upon to create a framework for just low-carbon transition in rice production systems. The Philippines has also experienced participating in global carbon markets in the past, including the CDM under the Kyoto Protocol. While this has allowed the country to engage in carbon trading, there is no fully developed national carbon market that incorporates just transition principles. Moving forward, there is a need for the development of specific legal instruments that ensure the fair distribution of the benefits and burdens of the transition to a low-carbon economy, particularly for vulnerable sectors. 6.1.2. Inter-agency coordination and stakeholder engagement The Philippines considers coordination and collaboration from various sectors essential for the implementation of the policy frameworks to achieve its target NDC. Overall, the implementation of the NDC is coordinated through the NDC Technical Working Group (NDC-TWG), composed of all Philippine national government agencies. For the agriculture sector, the lead NDC-TWG is the DA through CRAO (See Section 4.1) and the National Irrigation Administration (NIA). Other sectoral leads are the DENR, the DOE and the DOTr. The CCC serves as the secretariat of NDC-TWG, reporting directly to the Office of the President. It is responsible for assessing the contribution of the sector policies and measures to the overall NDC objective, the assurance of balance in NDC delivery, the MRV of the NDC delivery, and reporting under national and international requirements. The structure of the NDC-TWG is presented in Figure 2. 19 Source: GoP, 2022 Figure 2. Key stakeholders for implementing the nationally determined contribution in the Philippines. 20 Figure 3 shows a stakeholder map of organizations instrumental in implementing the NDCIP in the rice sector. Stakeholder influence and interest in the low-carbon transition vary significantly across institutions. DA, as the lead NDC-TWG for agriculture, holds the highest level of influence and interest in advancing climate initiatives in the sector. Its central role in coordinating climate strategies within the rice sector and aligning them with national development goals and international commitments positions it as a key driver of implementation. Other stakeholders, including global climate partnerships (e.g., the Climate and Clean Air Coalition), regional organizations (e.g., SEARCA), NGOs, and private sector actors, typically exhibit a high level of interest but relatively low influence. They contribute by providing technical insights, policy recommendations, and innovative solutions during the planning and decision-making stages, as well as in implementation. Source: Mirzabaev et al., 2025 Figure 3. Stakeholders' influence-interest matrix and strategies to advance low emission initiatives, Philippines, 2025. Recognizing the strategic importance of private sector engagement, Japanese companies have begun investing in the development of project- level MRV systems (see Section 5.1). These collaborations bring in resources and technological expertise, strengthening the national MRV infrastructure. For instance, PhilRice currently maintains a stock of gas chambers for measuring GCG emissions in Central Luzon. With support from Japanese firms, this network of observation sites is expected to expand, enhancing the accuracy of emissions data and enabling more robust tracking of mitigation progress. This expansion will not only improve the reliability of emissions parameters but also reinforce the credibility and effectiveness of the national MRV system—an essential component for accessing international climate finance and demonstrating compliance with NDC targets. Rice farmers also play active roles in climate mitigation efforts by contributing activity data that support MRV systems. activity data collection, contributing to the MRV. Farming activities are monitored every planting season to be collected and compiled by their respective irrigator associations (IAs). These data are collected by Crop Specialists and/or Rice Sufficiency Officers for data processing and 21 management (UNFCCC, 2019). This approach enhances field-level data accuracy and fosters farmer engagement in climate action. Strengthening the capacity of IAs and field officers in data collection and management is essential to ensure the reliability of MRV systems and to support the country’s compliance with its climate commitments. 6.1.3. Capacity building initiatives Rice-focused projects and programs, particularly the AMIA Program (See Section 4.1), implement activities to capacitate farmers on climate-resilient rice technologies and practices such as the AWD. While there are ongoing efforts to implement such, findings of Villanueva et al., (2025a) found that majority of the rice farmers in Nueva Ecija (70%), Iloilo (63%), and Davao del Sur (61%), still have no awareness on AWD (Figure 4). Source: Villanueva et al., 2025a Figure 4. Farmers’ awareness on alternate wetting and drying technology (in percent) in select provinces in the Philippines, 2024. Limited awareness of AWD among rice farmers may be linked to the degree of support they received (Figure 5). Between 2021 and 2024, only 17% of farmers across provinces reported receiving support to adopt AWD. Notably, Davao del Sur had the highest proportion (32%) of supported farmers. The most common forms of support included capacity-building activities such as training and seminars, as well as cash capital, in-kind inputs, and subsidies or discount incentives. These were primarily provided by local government units (Villanueva et al., 2025a). 22 Source: Villanueva et al., 2025a Figure 5. Farmers who received support to adopt AWD (in percent) in select provinces in the Philippines, 2021-2024. To adopt climate-smart technologies, rice farmers in the surveyed provinces would prefer having financial incentives, input subsidies, and free access to machineries (Figure 6). Notably, only a few farmers indicated a need for training and seminars to shift to climate-smart practices, despite limited awareness of technologies such as AWD. This suggests that farmers prioritize access to physical resourcesit over knowledge-based interventions, likely due to constraints in capital and infrastructure. Enhancing the availability of these tangible supports, while complementing them with targeted capacity-building may be key to accelerating the adoption of climate-smart practices. Source: Villanueva et al., 2025a Figure 6. Incentives preferred by rice farmers to adopt climate-smart practices and technologies in select provinces in the Philippines, 2024. 23 Most rice farmers surveyed demonstrated limited awareness of key aspects of the carbon market, including the measurement and verification of carbon emissions, carbon credits, trading mechanisms, relevant organizations, and potential income opportunities (Figure 7). This indicates that the concept of quantifying and monetizing GHG emissions remains largely unfamiliar to farming communities. Awareness levels were consistently low across provinces, with Nueva Ecija showing the most significant gap—over 90% of respondents were unaware of all indicators. Davao del Sur reflected similarly limited understanding. Although Iloilo had the highest proportion of informed farmers, more than 70% still lacked awareness of these concepts (Villanueva, 2025a). These findings highlight the need for the Philippine government to strengthen capacity-building initiatives focused on climate-smart agriculture and carbon market literacy. Enhancing farmer understanding of these mechanisms is essential to enable their meaningful participation in climate mitigation efforts and to unlock potential financial benefits through carbon credit systems. Source: Villanueva et al., 2025 Figure 7. Farmers’ awareness on carbon market by key concept (in percent) in select provinces in the Philippines, 2024. 6.1.4. Capacity to monitor, report, and verify changes in practices that reduce emissions The implementation of MRV activities for GHG emissions in rice farming has made progress in the Philippines. Data on rice farming is collected through various methods and involves multiple stakeholders. The following tools have been useful in the rice sector MRV (IRRI, 2025): • PhilRice Ricelytics is a data analytics platform developed by PhilRice to provide farmers with data-driven solutions to improve productivity and reduce costs. It provides insights and information that can help farmers optimize their rice production. Ricelytics uses data science and technology to analyze weather, soil conditions, and farming practices. The platform provides tools to assist with weather forecasting, crop monitoring, pest 24 and disease prediction, and irrigation management. However, Ricelytics is only updated in a five-year survey cycle; thus, may not be sufficient for continuous monitoring. This temporal gap limits the ability to capture seasonal or annual changes in farming practices and emissions. Although increasing the survey frequency could provide more accurate and timely data, it would require a significant investment of resources. • The Rice Crop Manager (RCM) Advisory Service is a digital decision-tool developed by IRRI in collaboration with local agricultural research institutions and partners to help rice farmers optimize their rice farm management. The tool uses data collected from farmers to generate site- specific recommendations including timing of AWD, and site-specific nutrient management. While RCM is not a full MRV tool, it can support MRV systems by promoting low-emission practices and generating farm-level data. The collected farm data (e.g., farm area, yield, farm practices) can be use in GHG calculations. Additionally, its georeferencing function can allow spatial tracking of emission- reducing practices. • The PSA’s broader agricultural statistics are accessible. Identifying key parameters for data collection across these sources is essential to ensure efficiency and accuracy. Despite the presence of these tools, challenges remain in establishing a fully functional MRV system in rice. The regional stakeholder consultation workshop on accelerating methane reductions in Southeast Asia held on March 2025 identified the following challenges in establishing MRV in rice: (i) absence of a clear MRV policy framework; (ii) regulatory challenges and lack of political will; (iii) fragmented efforts due to limited stakeholder engagement and coordination; and (iv) difficulty in demonstrating economic benefits of methane reduction to gain private sector and financial institution support (Mirzabaev et al., 2025). Specifically, the limited existence of detailed baseline data on rice farming practices resulted in insufficient information to determine whether farmers are actively reducing GHG emissions through their practices. In addition, data fragmentation as a result of non-standardized data collection and methodologies make consolidation of information difficult. Centralizing data management framework for MRV, and integrating different project data into a national database were among the recommendations made to manage MRV data effectively. Meanwhile, among the opportunities recognized in the consultation workshop were: (i) updating the NDC to include specific rice mitigation methods and clear reduction targets for 2035; (ii) strengthening evidence-based policy recommendations and consolidating research; (iii) presenting gaps and findings to the DA to promote coordinated action; (iv) securing international funding for infrastructure improvements, farmer incentives, and capacity- building programs; (v) engaging effective policymakers during political transitions to advocate for strengthened climate action; and (vi) establishing a centralized body to bridge gaps between government agencies, research institutions, and farmers for streamlined MRV implementation (Mirzabaev et al., 2025). It was also suggested in the consultation workshop that a unified approach, supported by coordinated policy reforms, could strengthen the country’s MRV system, fostering transparency and accountability in emissions reporting. This will require strong inter-agency collaboration, with clearly defined roles for each institution. It was highlighted that research institutions (e.g., PhilRice) are well-positioned to oversee monitoring and reporting, while independent third parties can conduct verification to ensure transparency and accuracy. Additionally, local government units 25 and private sector stakeholders may be engaged in promoting data transparency and reliability. 6.1.5. Financing for low-emission rice projects Financial constraints remain a major hurdle in the Philippines. The country’s NDC conditional target is 72.29%; thus, it will need international support to sustain MRV activities (Mirzabaev et al., 2025). Mechanisms to support both farmers and developing countries in adopting these systems without financial strain are necessary. Additionally, strong advocacy at the local government level is required to institutionalize policies and incentives that promote MRV adoption. The Bank of the Philippine Islands (BPI) offer two financial instruments that have potential to support sustainable agricultural projects, including rice carbon projects. Firstly, the Sustainable Development Finance program provides technical and financial support for sustainable practices in the agribusiness sector including postharvest processing, milling, and trading activities. Secondly, BPI’s BanKo program offers microfinancing, financial education, and socialized loan terms for farmers which can potentially increase farmers’ eligibility for green loans related to adoption of low-emission rice cultivation technologies (Ruba, 2023 as cited by SEARCA & BSP, 2024). 6.2 Thailand This section is an evaluation of Thailand's institutional readiness to support a fair and inclusive low-emission transition in rice farming. This examines the governance structures, coordination, and regulatory mechanisms required to integrate carbon market initiatives in rice cultivation while ensuring equitable economic benefits for smallholder farmers. 6.2.1. Regulatory and legal framework Thailand’s regulatory framework for low- emission agriculture includes initiatives led by TGO, which oversees the T-VER Program. TGO has refined the Premium T-VER standard to accommodate agriculture-specific requirements, including those in rice cultivation. This adaptation allows practices such as AWD to be eligible for generating carbon credits, directly targeting methane emission reductions in rice paddies. The Climate Change Action Plan for the Agriculture Sector (2023–2027) further strengthens these regulatory efforts by setting measurable emission reduction goals across the agricultural sector, helping integrate sustainable practices into Thailand’s farming landscape. On the legal side, the upcoming Climate Change Bill is expected to establish a compliance-based emissions trading scheme, which would support regulated industries in offsetting emissions through carbon credits. It provides a legal framework for scaling up low-emission practices in the country, which can be transmitted to rice cultivation. Simplifying MRV processes within this framework, particularly for smallholder farmers, would further improve accessibility to carbon markets. 6.2.2. Inter-agency coordination and stakeholder engagement Thailand’s governance framework for a low- emission transition in agriculture relies on key agencies coordinating climate and agricultural policies. The DCCE and TGO lead climate- focused efforts, while the MOAC, along with the Office of Agriculture Economic (OAE) (the sectoral focal point), the Rice Department (RD) and Department of Agricultural Extension (DOAE), work directly with farmers to implement low-emission practices. Figure 8 illustrates how they interact with each other in facilitating Thailand’s transition to low- emission agriculture. Climate-related offices must develop the country’s national and sectoral climate policies, while agriculture- related agencies must integrate climate change issues into their agricultural strategies. The overlap in their work addresses the country’s 26 policies on low-emission transition in agriculture and rice farming. MOAC coordinates these agricultural policies with national climate goals, supported by plans like the National Strategy (2018–2037), the Climate Change Master Plan (2015–2050), and the Climate Change Action Plan for the Agriculture Sector (2023–2027). These plans collectively emphasize sustainable practices, the use of technology, and emission reductions, ensuring that Thailand’s agricultural sector aligns with its low-carbon goals. DOAE assists farmers in adopting techniques like AWD, and RD provides technical guidance for rice cultivation. Figure 8. Interaction between climate and agriculture stakeholders in forming Thailand’s policies on low-emission transition in agriculture and rice farming. While each agency has a distinct role, more streamlined coordination would strengthen Thailand’s readiness for a unified low-emission approach in agriculture. For instance, TGO manages carbon credits under the T-VER Program, while DOAE and RD implement these practices on the ground. Regular inter-agency meetings and clear protocols could improve alignment across climate and agricultural goals, enhancing Thailand’s ability to implement cohesive low-carbon practices while ensuring economic benefits for smallholder farmers. Together, these national plans and the collaborative framework among agencies are essential to achieving a transition that is environmentally sustainable and equitable for the agricultural community. Stakeholder engagement and inclusivity Stakeholders in Thailand have varying levels of influence and interest with regards to low- emission rice projects and climate change mitigation initiatives (Figure 9). The stakeholders that have the most interest and influence includes those mandated by the government to perform climate adaptation and mitigation roles. It is led by the NCCC which is the final approving body for the NDC prior to submission to UNFCCC. Other government agencies such as the Ministry of Finance, the Ministry of Natural Resources and Environment are among those with high influence and interest. Given the significant influence of multilateral development banks, they are consistently engaged in regional development initiatives to ensure sustained funding support for low-emission rice carbon projects. 27 Source: Mirzabaev et al., 2025. Figure 9. Stakeholders' influence-interest matrix and strategies to advance low emission initiatives, Thailand, 2025. Engaging smallholder rice farmers is Thailand’s way to show its commitment to a fair, low- emission transition. Programs like Thai Rice NAMA and the SRP encourage accessibility of low-emission practices by providing training and resources. Partnerships with private companies like Kasikorn Bank and CP Group add financial support and expertise, further boosting the impact of these practices. Efforts by the TGO and DCCE are also creating new opportunities for farmers to join voluntary carbon credit markets. However, it remains challenging for smaller stakeholders to adopt AWD practices and participate in the VCM. Expanding outreach and providing targeted financial and technical support can make AWD adoption easier. Formalizing engagement strategies and directing resources to meet small farmers' needs are key steps. Thailand’s climate organizations should also integrate measures that allow smallholder farmers to fully participate in the VCM. 6.2.3. Capacity building initiatives Building capacity among farmers is essential to advancing Thailand’s low-emission transition in rice farming. Programs like Thai Rice NAMA play a vital role by equipping farmers with training and technical assistance to adopt low-emission practices such as AWD. Additionally, Thailand’s Good Agricultural Practices (Q-GAP) standard supports AWD, as this method aligns with Q- GAP’s environmental goals of reducing GHG emissions while maintaining crop yields (Suwanmaneepong et al., 2023). Research by Mungkung et al. (2022) shows that structured group training and support for water- saving practices like AWD can enhance adoption rates, particularly among organized farmer groups. Similarly, Suwanmaneepong et al. (2023) emphasizes that farmers’ willingness to adopt AWD depends on perceived benefits, knowledge, and institutional support, underscoring the need for accessible, tailored training resources. Importantly, Malumpong et al. (2020) found that some AWD methods may reduce yields compared to continuous flooding, making targeted training crucial to help farmers implement AWD effectively while mitigating potential yield impacts. The effectiveness of Thailand’s capacity-building initiatives is evident in the results of the IRRI 28 survey conducted across five provinces, Phitsanulok, Kalasin, Suphan Buri, Ayutthaya, and Chai Nat (Villanueva et al., 2025b). As shown in Figure 10, a significant percentage of rice farmers demonstrated awareness of key climate-smart technologies. Specifically, 78% were aware of AWD, with 47% slightly aware and 31% highly aware. Awareness of DSR was similarly high, with 40% slightly aware and 43% highly aware. Sustainable rice straw management also showed strong recognition, with 39% slightly aware and 44% highly aware. These findings suggest that Thailand’s targeted capacity-building efforts have successfully increased farmer awareness of climate-smart practices, laying a strong foundation for broader adoption and implementation. Source: Villanueva et al., 2025b. Figure 10. Farmers’ awareness on various climate-smart technologies (in percent) in rice in select provinces in Thailand, 2024. Alternate wetting and drying Direct-seeded rice Sustainable rice straw management 29 Rice farmers’ awareness of AWD appears to be closely associated with the water management practices employed in their fields. A majority (80%) employed multiple drainage techniques in their irrigation systems (Figure 11). Among those farmers familiar with AWD, around half reported receiving support for its implementation (Villanueva et al., 2025b). Training and seminars were the most prevalent type of assistance received, as reported by 96% of those who received support (Figure 12). In contrast, material and financial assistance were reported less frequently. This implies that expanding access to finance and equipment could help accelerate the adoption of AWD. It is worth noting that the local government is the entity to which the rice farmers attributed the support (Villanueva et al., 2025b). Source: Villanueva et al., 2025b Figure 11. Farmers' water regime (in percent) in select provinces in Thailand, 2024 Source: Villanueva et al., 2025b Figure 12. Support received (in percent) by farmers to implement climate-smart practices, by type of support and technology in Thailand, 2022-2024. 30 When asked what support the farmers need to shift to climate-smart practices and technologies, Thailand’s rice farmers prefer financial incentives (80%) and input subsidies (53%), such as seeds and fertilizers (Figure 13). According to Villanueva et al. (2025b), incentive schemes should be tailored to specific local contexts, taking into account variations in production costs, opportunity costs, and farmers’ perceptions of risk. When designing carbon financing or subsidy programs, policymakers are encouraged to consider these differences. In wealthier or higher-cost regions, larger payments may be necessary to motivate farmer participation, whereas in other areas, smaller incentives may be sufficient if complemented by additional benefits. Source: Villanueva et al., 2025b Figure 13. Incentives preferred (in percent) by farmers to adopt climate-smart practices and technologies in select provinces in Thailand. 2024. Awareness of the carbon market and its key components remain notably low among rice farmers in Thailand (Figure 14). Approximately 70% of respondents indicated they were unaware of the existence of carbon markets. This widespread lack of awareness extends to critical aspects such as the measurement and verification of GHG emissions, the concept of carbon credits, trading mechanisms, and the potential economic benefits for farmers. The idea of quantifying and monetizing GHG emissions is still unfamiliar to most farmers, underscoring the need for targeted information campaigns and capacity-building efforts to bridge this knowledge gap and enable farmer participation in emerging climate finance opportunities (Villanueva et al., 2025)... 31 Source: Villanueva et al., 2025b Figure 14. Farmers’ awareness of carbon market by key concept (in percent) in select provinces in Thailand, 2024 6.2.4. Oversight and accountability mechanisms Thailand’s carbon programs use oversight mechanisms like public consultations and third- party verification under the Premium T-VER. These processes ensure transparency and credibility in generating carbon credits. The TGO’s standards align with international frameworks and require rigorous project assessments, which are essential for maintaining buyer confidence in the VCM. Suwanmaneepong et al. (2023) emphasized that accessible, reliable systems are key to helping farmers adopt sustainable practices. Streamlined tools can make it easier for farmers, especially those unfamiliar with complex carbon market requirements, to participate. Adopting digital MRV solutions, like remote sensing and mobile apps (e.g., digital data logging), could make data collection and reporting easier for farmers. These streamlined processes would reduce administrative tasks, improve transparency, reduce cost, and ensure the reliability that buyers expect. Digital MRV tools can make VCM participation more accessible and practical for farmers across Thailand. Further, lowered costs may facilitate better profit-sharing between the private contractors and the farmers. For MRV to be more effective and implemented in socially equitable manner, the costs of collecting data for MRV should not be incurred by farmers. 6.2.5. Engaging potential carbon credit buyers Thailand’s institutions are working to attract buyers for rice-based carbon credits through transparent standards. Oversight mechanisms like public consultations and third-party verification under the Premium T-VER, help ensure credibility. The TGO has aligned these 32 standards with international benchmarks, requiring projects to meet strict criteria that build trust with Environment, Social, and Governance (ESG)-focused buyers. The DCCE supports these standards with climate-centered policy efforts to increase demand for Thai carbon credits. Partnerships with companies like KBANK also help by offering green financial products tied to carbon metr