Regional workshop highlights policy reform, blended finance, and carbon markets as key to scaling climate-resilient rice cultivation.

Southeast Asia’s rice sector could emerge as one of the region’s most powerful climate solutions if governments move faster to align policy, finance, and regional coordination behind low-emission cultivation practices, according to a high-level workshop convened by the International Rice Research Institute (IRRI).

The three-day forum, titled “Investment Mechanisms for Promoting Low-Emission Rice Cultivation in ASEAN Countries,” brought together more than 70 policymakers, technical experts, and rice sector leaders from Cambodia, Indonesia, Lao PDR, the Philippines, Thailand, and Viet Nam. Participants examined pathways to transition low-emission rice production from pilot initiatives to large-scale regional implementation.

Southeast Asia accounts for nearly a quarter of global rice production, yet flooded paddy systems are a significant source of methane emissions, often surpassing those from livestock and other crops. Experts at the workshop underscored that proven practices such as Alternate Wetting and Drying (AWD), improved nutrient management, and sustainable rice straw utilization can reduce greenhouse gas emissions by as much as 65 per cent without compromising yields.

“As ASEAN countries strengthen their Nationally Determined Contribution commitments, there is growing recognition that accelerating the transition toward a low-emission, resource-efficient, and climate-resilient rice production system is both necessary and urgent,” said Dr. Tran Cong Thang, Director of the Institute of Policy and Strategy for Agriculture and Rural Development (ISPAE).

Despite technical validation across the region, scaling adoption remains uneven. Discussions highlighted the need for enabling ecosystems—including supportive policies, accessible financing, institutional coordination, and reliable data systems—to make low-emission rice both viable and investable at scale.

Country progress varies. Viet Nam is moving beyond pilot projects toward broader implementation backed by national policy and coordinated investment. The Philippines has established technical foundations but faces constraints in measuring, reporting, and verification (MRV) systems and financing mechanisms. Thailand has aligned low-emission rice practices with national climate goals through dedicated programs, while Indonesia shows strong national commitment but requires scalable investment pathways. In Cambodia and Lao PDR, efforts remain largely project-driven, with emerging policies aimed at attracting climate-focused investments.

New research presented by IRRI economists, based on farmer surveys and economic analysis in the Philippines, Thailand, and Viet Nam, revealed that farmer incentives, access to training, technical support, credit, and machinery availability significantly influence adoption rates. Training and capacity-building emerged as critical levers, alongside flexible carbon market contracts and targeted farm-level support.

“Our analysis demonstrates clear pathways for ASEAN countries to significantly reduce methane emissions while improving farmer incomes,” said Dr. Alisher Mirzabaev, IRRI Senior Scientist for Policy Analysis. “The investment requirements are important but achievable, and the economic and social benefits make this transition not just environmentally necessary but economically compelling.”

A simplified and operational MRV framework was identified as a regional priority. Participants noted that fragmented or overly complex systems hinder investor confidence and limit access to carbon finance. A standardized MRV approach could help quantify methane reductions, attract private capital, and lay the groundwork for a regional carbon market aligned with food security and climate objectives.

Blended finance models—combining public funding, climate finance, and private investment—were also emphasized as a pathway to de-risk farmer adoption and strengthen value chains. However, improving financial literacy among farmers was deemed essential to ensure effective participation in climate-linked financing mechanisms.

“This is a pivotal moment for ASEAN to affirm its global pioneering position in low-emission rice production,” said Dr. Jongsoo Shin, IRRI Regional Director for Asia. “We are not just protecting the environment but also opening new markets, enhancing value chain worth, and improving sustainable livelihoods for millions of farmers.”

The workshop was supported by the Methane Accelerator for Southeast Asia (MASEA) project, the Climate and Clean Air Coalition (CCAC), the ASEAN EU-German Climate Action Programme (CAP) implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and ISPAE under Viet Nam’s Ministry of Agriculture and Environment.

As ASEAN countries refine their climate commitments and food security strategies, stakeholders agreed that coordinated investment, policy reform, and regional collaboration will determine whether low-emission rice becomes a niche innovation or a cornerstone of Southeast Asia’s climate resilience strategy.

Published Date: February 16, 2026