Base Carbon Provides Update on Vietnam Regulatory Framework for International Carbon Credit Transfers

• On 8 Apr 2026 the Vietnamese government issued Decree No. 112/2026/ND‑CP establishing a formal framework for international carbon‑credit transfers under Article 6 of the Paris Agreement, effective 19 May 2026.
• The decree creates a Letter of Authorization (LOA) and Corresponding Adjustment process that Base Carbon can now apply for on its Vietnam Household Devices project, its largest portfolio asset.
• The project is expected to generate 7.6 M credits in Phase 2 (2025‑2032) and includes an expansion option for up to 4.7 M additional credits (total potential ~19.7 M).
• Base Carbon retains the right to purchase all future credits at US$5.00 each (with higher‑priced options for partner SIPCO).
• The LOA would make the credits eligible for CORSIA and Singapore’s carbon tax regime (currently S$45/t, rising to S$50‑S$80/t by 2030‑31).
• The company cites a precedent: Rwanda Cookstoves project secured an LOA earlier in 2026, achieved CORSIA eligibility, and completed its first compliance sales.

• Regulatory catalyst: The decree converts Vietnam’s previously ambiguous policy environment into a concrete, market‑ready pathway. This is a new development not priced in by the market; prior guidance only mentioned “potential” regulatory approval.
• Inventory upside: Ability to lock‑in a $5/credit purchase price for up to 7.6 M credits (plus optional 4.7 M) creates a sizable, low‑cost supply of compliance‑grade carbon credits. At current CORSIA pricing ($30‑$60/t), the embedded value is $228‑$456 M, far exceeding the company’s market cap.
• Revenue certainty: The LOA and purchase option provide a clear monetization route into high‑integrity markets (CORSIA, Singapore tax). This reduces execution risk compared with projects still awaiting approval.
• Alignment with prior expectations: Earlier releases (Feb 2026) announced Rwanda’s CORSIA eligibility; the Vietnam decree fulfills a similar regulatory milestone that management had signaled would be “meaningful”. The news is in line with those expectations but now delivers concrete, quantifiable upside—hence material positive rather than routine.
• Risk considerations: The LOA still requires an application and approval by SIPCO; timing (effective 19 May) leaves a short window before the next reporting period. Execution risk remains modest given the precedent in Rwanda.

Base Carbon Inc. develops, finances, and manages carbon‑credit projects in emerging markets. Its three flagship assets are:
1. Vietnam Household Devices – cookstove & water‑purifier distribution; Phase 2 slated for 7.6 M credits with a 4.7 M credit expansion option.
2. Rwanda Cookstoves – already CORSIA‑eligible, generating ~1–2 M credits annually.
3. India Afforestation/RE/REV (ARR) – 6.5 M trees planted; targeting ~1.2 M credits with optional expansions.