Idemitsu Vietnam Participates in Forum on Promoting Business Engagement in the Joint Crediting Mechanism Towards Readiness for Vietnam’s Carbon Market

On July 22, 2025, Idemitsu Vietnam proudly participated in the Forum on Promoting Business Engagement in the Joint Crediting Mechanism (JCM) in Vietnam. The event was held in Hanoi and jointly organized by Vietnam’s Ministry of Agriculture and Environment (MAE) and Japan’s Ministry of the Environment (MOEJ). It brought together high-level government officials, private sector leaders, and sustainability stakeholders to discuss Vietnam’s readiness to establish a domestic carbon market under Article 6 of the Paris Agreement.

As a key business representative, Idemitsu Vietnam took part in both the thematic panel and technical sessions, where it showcased its efforts in generating carbon credits in the agricultural sector—offering a model for scalable, inclusive, and technology-driven climate action in Vietnam.

During the forum, Hiromitsu Asahi, General Manager of the Business Strategy & General Administration Department at Idemitsu Vietnam Co., Ltd., delivered a presentation on the company’s approach to carbon credit generation in Vietnam’s agricultural sector. As part of its commitment to carbon neutrality, Idemitsu Vietnam is pioneering innovative solutions to produce high-quality carbon credits. The company is targeting a 46% reduction in CO₂ emissions by 2030 (compared to 2013 levels) and is actively investing in ecosystem-based projects that support Vietnam’s low-carbon development.

One such project, in collaboration with Lam Son Sugarcane Joint Stock Corporation (Lasuco) and Sagri Co., Ltd., is being implemented in Thanh Hoa Province. The initiative focuses on sugarcane fields managed by Lasuco’s contract farmers and utilizes satellite-based monitoring, AI analysis, and GIS integration. By promoting regenerative agriculture, the project aims to reduce nitrous oxide emissions and increase soil organic carbon (SOC), thereby contributing to the creation of Verified Carbon Units (VCUs) and supporting both sustainable agriculture and a low-carbon society.

To address challenges in soil carbon measurement, the project employs Digital Soil Mapping (DSM)—an AI-driven method that combines satellite imagery with minimal field sampling to deliver scalable and cost-effective Monitoring, Reporting, and Verification (MRV). Looking ahead, Idemitsu aims to scale the model, enhance community awareness through education and media outreach, and advocate for the recognition of advanced technologies in carbon certification. The long-term vision is to promote sustainable agriculture that not only combats climate change but also empowers farmers andboosts rural economies.

During the Panel Discussion on Carbon Market Projects in Vietnam, Nishimiya Koji, Executive Advisor of Idemitsu Vietnam, elaborated on the rationale for investing in agriculture—a sector traditionally outside the company’s core energy focus.

“We recognize that energy and agriculture are among the largest sources of greenhouse gas emissions in Vietnam,” he stated. “To make a real difference, we must look beyond traditional sectors and collaborate with local actors who understand the land, the people, and the challenges.”

Mr. Nishimiya stressed that Idemitsu’s corporate philosophy is based on balancing environmental integrity with economic feasibility, focusing on solutions that are both scientifically robust andlocally inclusive.

However, one of the biggest challenges is transforming carbon credit into widely recognized and tradable commodities. Unlike physical goods, carbon credits are intangible and not easily understood, making their exchange and sale difficult. Raising public and business awareness in Vietnam is therefore essential. Mr. Nishimiya highlighted the importance of government-led initiatives, especially from the MAE, to foster understanding and adoption of carbon credit systems.

Idemitsu remains committed to expanding its carbon projects, starting with small-scale initiatives and scaling them up over time. As public awareness grows, project implementation will become more seamless. In the future, the company also plans to develop comprehensive solutions that incorporate storage technologies and extend beyond agriculture to other sectors.