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

TORONTO, April 08, 2026 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (“BCCPC”, together, with affiliates, “Base Carbon”, or the “Company”), is pleased to provide an update on its Vietnam household devices project (the “Project”) following an important regulatory development from the Government of Vietnam.

The Government of Vietnam has issued Decree No. 112/2026/ND-CP (the “Decree”), dated April 1, 2026, establishing a comprehensive regulatory framework for the international transfer of carbon credits. The Decree formalizes the process by which the Government of Vietnam may issue a letter of authorization (“LOA”) pursuant to Article 6.2 of the Paris Agreement and prescribes the procedures by which carbon project developers may apply for government approval to transfer carbon credits to international counterparties with a “Corresponding Adjustment”. The Decree takes effect on May 19, 2026.

Highlights:

• The Government of Vietnam has issued a comprehensive regulatory framework formalizing the LOA and Corresponding Adjustment process under Article 6.2 of the Paris Agreement.
  
  
• Receipt of a LOA, outlining the Corresponding Adjustment framework, would position the Project’s carbon credits for potential compliance market eligibility, including CORSIA and Singapore’s carbon tax regime, replicating the compliance pathway successfully established for the Company’s Rwanda cookstoves project.
  
  
• The Vietnam household devices project is the Company’s largest project by anticipated future carbon credit generation, with an estimated 7.6 million carbon credits issuable during the Project’s second phase and an estimated additional 4.7 million carbon credits potentially available in connection with the Project’s expansion option.
  
  
• With the Vietnam regulatory framework now prescribed and Project development partner, SIPCO, actively preparing the required application documentation, the Company believes it is well positioned to advance the Project through the LOA process immediately following the Decree’s effective date.
  
  

Strategic Significance

This regulatory development is directly relevant to the Company’s Vietnam household devices project, its largest project by anticipated future carbon credit production. Receipt of a LOA from the Government of Vietnam would enable the application of Corresponding Adjustments to the Project’s carbon credits, a critical step toward potential compliance markets eligibility. These markets include CORSIA, the global aviation industry’s carbon offsetting and reduction scheme, and Singapore’s carbon tax regime, under which eligible international carbon credits must carry Corresponding Adjustments pursuant to Article 6 of the Paris Agreement. Singapore’s carbon tax recently increased to S$45 (US$35) per tonne on January 1, 2026, with a stated trajectory of S$50 (US$39) to S$80 (US$62) per tonne by 2030^1,2. To facilitate the potential delivery of Vietnamese generated carbon credits into Singapore’s carbon tax regime, the countries of Singapore and Vietnam have executed an implementation agreement for the international transfer of certain Correspondingly Adjusted high-integrity carbon credits aligned to Article 6 of the Paris Agreement³.

The Company’s experience with its Rwanda cookstoves project provides a clear commercial precedent regarding the potential upside associated with expanding compliance market eligibility. In Rwanda, the LOA and Article 6 authorization process led to Verra’s CORSIA-eligible tagging of certain project carbon credits and first compliance market sales completed in Q1 2026. The Company believes that advancing the Vietnam Project through a similar process has the potential to enhance the value and monetization pathways for the Project’s future credit production.

Under the second phase of the Project (2025 to 2032), the Company retains the option to purchase all future carbon credits generated by the Project on a yearly basis at US$5.00 per credit, subject to certain buyback options at attractive prices materially higher than the Company’s option price⁴. In addition, the Company retains an expansion option under which it may expand the Project up to an aggregate total of 1,200,000 cookstoves and 600,000 water purifiers for an additional prepayment, with approximately 4.7 million additional carbon credits expected to be generated under this option. These structures provide the Company with significant embedded optionality should the Project’s carbon credits achieve compliance market eligibility and the associated pricing premiums observed in markets such as CORSIA and Singapore.

“Vietnam formalizing its Article 6 framework is a meaningful regulatory catalyst for our business. We have been through this process before with our Rwanda project where the granting of a LOA ultimately led to CORSIA eligibility and our first compliance market sales. For our Vietnam project, the existing implementation agreement with Singapore adds an attractive and complementary potential sales channel, with Singapore’s carbon tax currently priced at S$45(US$35)¹ per tonne,” said Michael Costa, CEO of Base Carbon.

About Base Carbon

Base Carbon provides capital, development expertise and management operating resources to projects involved in the global carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and reduction projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.

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Cautionary Statement Regarding Forward Looking Information

This press release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business, the future application of Article 6 of the Paris Agreement, the Decree and/or the implementation agreement between the countries of Singapore and Vietnam, the potential receipt, and timing, of a LOA with respect to the Project and a Corresponding Adjustment applied to carbon credits generated by the Project, the potential exercise of the Company’s option to purchase future Project carbon credits, the potential exercise of the Company’s option to expand the Project and the implementation of such option, the expected issuance, including the number and timing, of carbon credits, the Article 6 Authorized label and the CORSIA-eligible label, the ability to monetize or sell carbon credits and the receipt of proceeds from the disposition of carbon credits, the implementation of the CORSIA framework and Singapore’s carbon tax regime and timing of eligibility and participation of carbon credits and carbon credit methodologies thereunder, the market demand and price of carbon credits in compliance carbon markets, including pursuant to CORSIA and Singapore’s carbon tax regime. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans”, “seeks” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. These statements should not be read as guarantees of future performance, results, or achievements.

Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.

In respect of the Vietnam household devices project, certain factors that influence the commercial success of the project, including the timing and number of expected carbon credits, include among other things: (i) the Company has retained industry leading experts/consultants/advisors to assist with the evaluation, planning, negotiation and execution of the project, (ii) the work product, including monitoring reports, of the project’s validation and verification body, (iii) project carbon credit market prices, (iv) the verification of ongoing project monitoring reports and issuance of carbon credits by Verra, (v) changes to laws, regulation or policies in applicable jurisdictions, and (vi) the Company has sufficient funds on hand to make any required carbon credit purchase price payments.

In respect of the Vietnam household devices project, certain assumptions that influence the commercial success of the project, including the timing and number of expected carbon credits, include among other things: (i) distributed cookstoves and water purifiers perform to specification when used and participating households use the devices as contemplated by project estimates, (ii) the Company’s in-country project partners, being SIPCO and the project offtaker in the case of the Vietnam household devices project, perform their obligations in connection with the development and operation of the project, (iii) the new project methodology is applied to the project and there are no further changes in the project methodologies used by the applicable carbon credit registry or otherwise adopted by project proponents which results in less carbon credits being issuable, (iv) positive market recognition of the attributes linked to the Company’s carbon credits (such as project methodologies and changes thereto) and acceptance of such carbon credits by emissions trading schemes or compliance programs such as CORSIA or Singapore, and (v) continued participant involvement and public support, including that of applicable governmental authorities, of the voluntary carbon market.

The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the management’s discussion and analysis for the Company’s year ended December 31, 2025 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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1} FX based on $1USD = $1.289SGD as at March 31, 2026.
² Source: National Climate Change Secretariat, Carbon Tax. Available at: ncss.gov.
³ Source: Ministry of Trade and Industry Singapore, Singapore signs Implementation Agreement on carbon credits collaboration with Vietnam, September 2025. Available at: mti.gov.sg.
⁴ Any carbon credits purchased by the Company pursuant to the Project’s second phase may be sold to a combination of SIPCO, pursuant to its buyback option, and into the open market. Please refer to the Company’s previous public disclosure for further details.