By Lesly Goh, Senior Technology Advisor, World Bank

Climate change—rising temperatures, shifting rainfall patterns, and increased pest and disease pressures—has cast a shadow over rice production in Asia.

Given that 50% of the global population relies on rice for 80% of their dietary needs, this is a matter of global significance. Moreover, disruptions like the COVID-19 pandemic and geopolitical conflicts have sent food prices skyrocketing and pushed millions into hunger and poverty.

Researchers, agronomists, technologists, and policymakers strived to find solutions but only achieved small-scale pilots in different countries so far. We need a digital innovation hub for low-carbon rice to make big bets and think on a large scale. This hub could be pivotal in promoting digital solutions to incentivize smallholder farmers to adopt climate-smart agriculture practices.

How Important is Rice?

Rice is a vital food crop, feeding over 3.5 billion people globally, predominantly in Asia.

However, it also poses a significant environmental challenge, contributing to greenhouse gas (GHG) emissions.

The majority of rice production occurs in Asia, led by countries like China, India, Vietnam, and Bangladesh. This crop is a lifeline for around 150 million smallholder farmers, many of whom live in poverty and cultivate rice on less than 1 hectare of land.

Traditional rice cultivation practices, like flooded paddy fields and open burning of rice straws, are responsible for substantial GHG emissions.

In countries like Vietnam, rice cultivation accounts for a significant portion of overall emissions, with approximately half of the agriculture emissions and 75 per cent of methane emissions stemming from rice farming.

Methane and nitrous oxide, produced during these processes, are potent greenhouse gases, with global warming potentials 28 and 250 times greater than carbon dioxide (CO2), respectively.

Addressing rice cultivation’s environmental impact is crucial for food security and climate mitigation.

Critical Components to Create a Digital Hub

With rice demand projected to increase by over 25 per cent by 2035, we desperately need sustainable rice production. A digital innovation hub could offer solutions at scale by integrating key stakeholders to provide tools, data, and resources for sustainable rice farming. It also could link to systems that generate and sell carbon credits, incentivizing low-carbon practices and significantly changing farmer planting methods.

Three critical components are needed to create a digital hub:

1. Climate Smart Agriculture (CSA) Methods – to enhance productivity, boost resilience to climate change, and cut greenhouse gas emissions. Some key methods include Alternative Wetting and Drying (AWD) to optimize water use and reduce methane emissions; System of Rice Intensification (SRI) to decrease water consumption; Conservation Agriculture to minimize soil disruption; and Agroforestry to integrate trees with rice cultivation to sequester carbon and enhance soil fertility.
2. Digital Measurement, Reporting, and Verification (MRV) Systems – to leverage technology to monitor productivity, resource efficiency, and environmental sustainability, ensuring transparency throughout the supply chain.
3. Carbon Credits – to represent the reduction or removal of greenhouse gas emissions. In the context of a digital innovation hub, they can be generated through adopting climate-smart agriculture methods. Farmers can earn carbon credits by implementing these practices and selling them to organizations looking to offset their emissions. This financial incentive could lead to sustainable farming practices and reduce GHG.

Countries Making Strides

Several countries have made strides in low-carbon rice production already, yet most are small-scale pilots. A digital innovation hub could scale on the successes below:

• Vietnam: The VnSAT project increased farmer yields by 10-18 per cent, raised profits by around 6 per cent, and reduced GHG emissions in the Mekong Delta.
• China: The China Climate Smart Staple Crop Production Project (CSSCP) achieved a 22 per cent increase in rice yields and significant reductions in GHG emissions, fertilizer use, and water consumption.
• Ghana: A low-carbon rice project between Switzerland and Ghana focuses on AWD technology, aiming to reduce CO2eq emissions and cover a substantial portion of Ghana’s rice production.

Creating a Network

The success of the digital innovation hub hinges on collaborative efforts among an intricate and trusted network of key stakeholders, encompassing both the public and private sectors.

These essential players include:

• The government, which offers Digital Public Infrastructure, funding, and regulatory frameworks to promote sustainability.
• NGOs that contribute technical expertise, capacity building, and knowledge exchange for farmers. Funders, such as Multilateral Development Banks and Philanthropy Funds, provide financial support and technical assistance.
• AgriTech companies that work on digital tools and innovative solutions. Smallholder farmers stand at the core, benefiting from support and access to climate-smart agriculture.
• MRV Systems are vital for verifying carbon credits while academia conducts research and seeks breakthroughs.
• Finally, the carbon markets offer a platform for carbon credit trading, drawing investment into low-carbon rice production.

Creating a low-carbon rice digital innovation hub comes with its fair share of hurdles. First, we need to bridge the technology gap, ensuring access for all stakeholders, especially smallholder farmers, through investments in digital literacy.

Addressing farmers’ resistance to change requires financial incentives and training programs.

To overcome collaboration barriers, stakeholders must develop a strong partnership with a suitable incentive model and patience capital. This partnership requires building financial sustainability and effectively tapping into public and private funding, grants, and partnerships.

“The changing climate will only add to the complexities. But while challenges exist, they can be overcome through targeted strategies and interventions. It’s time to make big bets on low-carbon rice and pave the way for a more sustainable future.”

Lesly Goh, 2023 Bellagio Center Resident

About the writer

Lesly Goh is a World Bank Senior Technology Advisor and former World Bank Group Chief Technology Officer. She is a Fellow at Cambridge Centre for Alternative Finance (CCAF) at Cambridge University’s Judge Business School and Senior Fellow at National University of Singapore (NUS) Lee Kuan Yew School of Public Policy.

This article was first published as a blog on The Rockefeller Foundation website.