＜press release＞Idemitsu Kosan, Lasuco, and Sagri Agree to Collaborate for Vietnam’s First Registration of Carbon Credits for Improved Farmland Management

Idemitsu Kosan Co.,Ltd. (Representative Director, President & CEO: Shunichi
Kito, “Idemitsu Kosan”), Lam Son Sugar Cane Joint Stock Corporation (GD: Le Van
Phuong, “Lasuco”) and Sagri Co., Ltd (CEO: Shunsuke Tsuboi, “Sagri”) have
entered into an agreement to jointly implement a project to generate carbon credits
from sugarcane fields in Thanh Hoa Province, Vietnam. The project aims to promote
environmentally regenerative agriculture*1 in sugarcane fields cultivated by
Lasuco’s contract farmers by applying Sagri’s satellite analysis technology which
monitors and reduces Greenhouse Gases such as nitrous oxide *2 with the aim of
registering carbon credits*3. The demonstration project (the “Demonstration’) will
commence in 2025 with a view to commercialisation in 2026 .

On December 19, 2024, the signing ceremony for the implementation contract of the Lam son sugarcane material are carbon emission reduction project In the Demonstration, monitoring using Sagri’s satellite analysis technology will be applied to approximately 500 hectares of farmland operated by Lasuco’s contract farmers to practice environmentally regenerative agriculture. Sagri’s satellite analysis technology monitors soil conditions and crop growth on farmland based on satellite data. This technology can be used to optimise the type, amount, and timing of fertiliser application, which in turn is expected to help reduce greenhouse gas emissions and to improve work efficiency. Specifically, the satellite analysis technology will be used to reduce the volume of chemical fertilisers applied to the Idemitsu Kosan, Lasuco, and Sagri Agree to Collaborate on Vietnam’s First Carbon Credit Registration Based on Improved Farmland Management (VM0042) Demonstration of Environmentally Regenerative Agriculture Using Satellite Analysis Technology to be Launched for Commercialization in 2026

soil and to increase soil carbon sequestration by reducing the volume of chemical fertilisers applied and by making more appropriate use of organic fertilisers, and in turn to verify the reduction of Greenhouse Gases and enabling carbon credit registration.
If a sufficient volume of Greenhouse Gases emission reductions is confirmed through the Demonstration, a carbon credit verification procedure will be carried out by applying the methodology for improving agricultural land management (VM0042) defined by Verra, which operates the world’s leading carbon credit program. The aim is to further commercialise and generate carbon credits from 2026 onwards.
The area of farmland covered by the project will be expanded to approximately 8,000 hectares. The project will also aim to register carbon credits using Verra’s VM0042 methodology for improving farmland management. If the project is certified and registered by Verra, it will be the first project in Vietnam to be registered under VM0042 applying this methodology.

Citation: Sugarcane – LASUCO

The Vietnamese Government is aiming to achieve ‘net zero’ by 2050, which requires decarbonisation in the agricultural sector, one of the main economic sectors in Vietnam. This project will contribute to the decarbonisation of agriculture in Vietnam, as well as to the consideration of developing carbon credit generation projects in connection with other crops and region in Vietnam and other countries.

*1 Environmentally regenerative agriculture: Agriculture that aims not only to protect soil health but also to improve and regenerate the soil, thereby achieving environmental protection while enabling and food production.

*2 Nitrous Oxide: A Greenhouse Gas that is a major contributor to global warming.

*3 Verified Carbon Standard (VCS) certification program using the methodology for improving agricultural land management (VM0042) as defined by Verra, a carbon credit certification organization.

Reference; Overview of each company and their roles in this project

　　

Idemitsu Kosan Co.,Ltd.
Head office:1-2-1 Otemachi, Chiyoda-ku, Tokyo,Japan
Representative: Representative Director, President & CEO, Mr. Shunichi Kito
Business Description: Development, manufacture, and sales of a wide range of energy
sources and materials in the areas of Petroleum, Basic Chemicals, High-Performance
Materials, Power/Renewable Energy, and Resources based on relationships of trust with
partners and customers in a variety of fields.
Role: Investment in projects, negotiation with Vietnamese government agencies

　　

Lam Son Sugar Cane Joint Stock Corporation
Established:1980
Head Office: Lam Son town, Tho Xuan District, Thanh Hoa Province, Vietnam
Representative: Chairman, Mr. Le Van Tan
Business Description: Sugar and electricity production industry; Production of high-tech
agricultural products: premium vegetables, flowers, and fruits; Organic rice production;
Production and trading of beverages.
Role: Introduce projects and work with farmers to implement environmentally
regenerative agriculture

　　

Sagri Co., Ltd
Established:2018
Head Office: 725-1, Joraku, Hikami-town, Tamba city, Hyogo, Japan
Representative: CEO, Mr. Shusuke Tsuboi

Business Description: Business creation in the field of agricultural decarbonization
through satellite data analysis and machine learning
Role: Project management, provision of satellite data analysis technology, carbon credit
application process