AOP joins forces with AirX Carbon to tackle waste, deforestation, and carbon emissions in Vietnam’s Mekong Delta by transforming agricultural by-products into eco-friendly NetZero Pallet—offering a sustainable alternative to traditional materials while empowering local farmers and creating hundreds of jobs.

Traditional pallets used for handling, storing and transporting goods are typically made from 90% wood and materials like plastic or metal, and significantly contribute to waste, deforestation, and CO2 emissions. In Vietnam’s Mekong Delta region, 70% of agricultural by-products are typically burned or discarded directly into the environment without treatment, exacerbating environmental pollution.

To address these challenges, Action on Poverty is collaborating with AirX Carbon, a specialist in transforming agricultural waste into high-value, eco-friendly exports, to scale the innovative NetZero Pallet. Funded by P4G, this initiative converts agricultural waste such as coconut husk, rice husk, cacao husk, coffee husk, and sugarcane bagasse… into cost-effective and sustainable packaging.

Photo of the innovative NetZero Pallet which is made from agricultural waste

While conventional materials like wood and plastic contribute to the depletion of 300 million trees and million tons of CO2 emissions annually, the use of coconut husks, which is well-suited to the saltwater-prone Mekong Delta and is an efficient carbon sinks, makes NetZero Pallet an eco-friendly alternative, combating deforestation and GHG increase.

By utilising coconut husks to make pallets, the project aims to promote and complete coconut value chain across 10,000 ha to help the Mekong Delta develop a sustainable economy while addressing climate vulnerabilities.

The project has negotiated long-term commitments with around 10 suppliers in the region, including agricultural groups, cooperatives, and collectors, to establish a streamlined supply chain for raw materials. This will empower local farmers by providing them with additional income streams and contributing to local economies. Through the operations of NetZero Pallet factory in Mekong Delta, a minimum of 750 jobs will also be created.

AOP will support AirX to develop a robust Environmental, Social, and Governance (ESG) strategy and secure capital for scaling its operations. As the contractual recipient of P4G funds, AOP will also manage the project’s administration and implementation, leveraging its 35 years of experience in Vietnam and a proven track record of successfully managing more than 100 projects in the country.

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