Abstract
Rice production is a considerable source of Greenhouse Gases (GHG), namely methane. While rice accounts for about 1.5 % of global GHG emissions, its share can be much higher at the national level and even exceed emissions from the transport sector in some Asian countries. At the same time, rice is a promising target for mitigation options based on enhancing resource use efficiencies, in particular by saving irrigation water. Shifting the water management from continuous flooding to alternate wetting and drying reduces methane emissions by about 50% which gained much attention as a means to generate carbon credits. At this point, both the Compliance Market which incorporates the Clean Development Mechanism as well as the Voluntary Carbon Market driven by private sector players allow for certifying carbon credits in rice production. Due to the nature of this agricultural system dominated by small-holder farmers, however, the implementation of such projects faces practical, financial and legal challenges. While there are very few examples of successful carbon trading, the ongoing development of new carbon methodologies for rice projects may accelerate a broader adoption soon. On the policy side, rice is considered an especially important mitigation target which can be attributed to the high importance of the short-lived GHG methane for meeting the 2oC goal of the Paris Agreement. This led to new forms of government-to-government trading schemes for carbon credits generated through large-scale rice projects. It remains to be seen if these efforts by the public and private sector cutting across different scales will collectively have an impact on the overall GHG source of rice production.
