Leveraging the JCM Methodology for Methane Emission Reduction through Water Management in Rice Paddies
TOKYO, JAPAN – Green Carbon Inc. (CEO: Jun Okita, hereinafter “Green Carbon”), a company engaged in the creation and sales of nature-based carbon credits, today announced the signing of a Memorandum of Understanding (MoU) with the Province of Leyte, located in the Visayas Islands of the Philippines. This MoU marks the commencement of a carbon credit generation project (hereinafter, “the Project”) utilizing the Joint Crediting Mechanism (JCM*1) methodology “Methane Emission Reductions from Rice Paddies by Water Management.“
The Project aims to reduce methane gas emissions by introducing Alternate Wetting and Drying (AWD*2) techniques to target rice paddies in Leyte Province. A pilot demonstration began in January 2025, with the project scheduled to officially start in June on approximately 1,000 hectares of rice paddies. Within the next three years, Green Carbon plans to expand the project to approximately 40,000 hectares, covering all irrigated rice paddies in the province, with the goal of generating a total of approximately 1 million tons of carbon credits over the next 10 years.
Including Leyte Province, Green Carbon aims to expand project development to 1 million hectares of rice paddies across the Philippines within a few years, equivalent to more than half of the country’s total irrigated rice paddy area.”
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◆Background of the MoU with Leyte Province
Green Carbon is dedicated to creating nature-derived carbon credits, primarily in Southeast Asia, with projects spanning a wide range of fields including forest conservation, rice paddies, mangrove afforestation, reduction of cattle-related methane emissions, and biochar projects. The company develops carbon credit projects tailored to the specific natural resource characteristics of each region and ensures efficient and transparent project operations through site selection and monitoring using satellite data.
In the Philippines, greenhouse gas (GHG) emissions from the agricultural sector reach approximately 54 million tons annually*3. Of this, emissions from rice paddies account for about 13 million tons (approximately 25% of agricultural emissions*4), highlighting the urgent need for reduction measures. Against this backdrop, Green Carbon initiated the development of projects to reduce methane emissions from rice paddies using AWD in collaboration with local research institutions starting in FY2023.
Leyte Province, where the Project is being implemented, is a region where rice cultivation is a major industry. With abundant rainfall and fertile plains, the province produces approximately 350,000 tons of rice annually from its vast rice paddies covering about 80,000 hectares*5.
This Project will be carried out in cooperation with Visayas State University *6, verifying its effectiveness through the measurement and analysis of methane emissions. It aims to achieve both sustainable agricultural development and a reduction in environmental impact, aligning with the Philippine government’s emission reduction strategy.
○Leyte Province, Visayas Islands, Philippines (Reference: Google Earth)
◆ Comment from the Provincial Agriculturist of Leyte Province
〇Ms. Imelda Sievert:
Prior to the project’s launch, Green Carbon visited the Leyte Provincial Agriculture Office. The Provincial Agriculturist expressed high expectations for the Project, stating, “Cooperation with Green Carbon Inc. is a timely initiative for Leyte’s farmers who are seeking rice cultivation technologies that minimize vulnerability to climate change risks and do not adversely affect harvests, all without imposing additional burdens on the environment.” This comment demonstrated a positive stance towards the project’s implementation.
○Official Facebook Post from the Leyte Provincial Agriculture Office
◆Utilization of JCM Credits
In early February 2025, a groundbreaking methodology for reducing methane emissions from rice paddies was approved under the JCM between Japan and the Philippines – the first of its kind globally. Project registration based on this methodology will enable agricultural practices in the Philippines that contribute to reducing environmental impact and improving productivity, while simultaneously contributing to Japan’s GHG emission reduction targets.
In Japan, it has been decided that JCM credits can be applied to offset excess emissions reported by companies under the GX-ETS *7, and demand for these credits is expected to increase further. Furthermore, trading of JCM credits on the Tokyo Stock Exchange Carbon Credit Market is also being considered, which is anticipated to improve trading liquidity. Green Carbon, considering these developments, aims to contribute to the decarbonization efforts of both the Philippines and Japan while ensuring the economic viability of its projects.
◆Future Outlook
Through this Project, Green Carbon aims to accelerate the adoption of AWD in the Philippines, promoting agricultural practices that contribute to decarbonization and enhance farmers’ profits. Including projects already underway in Bulacan, Batangas, and Nueva Ecija provinces, the company plans to implement similar projects in 16 provinces across the Philippines within this year, with a phased rollout to approximately 1 million hectares of rice paddies nationwide by 2030. Furthermore, leveraging the approval of the rice paddy methodology under the Japan-Philippines JCM, Green Carbon will promote methodology development in other partner countries, leading project development in Southeast Asian nations.
※1: Joint Crediting Mechanism (JCM): The JCM is a system through which Japan contributes to GHG emission reductions in partner countries by facilitating the diffusion of leading decarbonization technologies. The reduction outcomes are then utilized to achieve the reduction targets of both countries. The Philippines and Japan initiated the JCM parceria in January 2017, enabling the implementation of projects between the two nations.
※2: Alternate Wetting and Drying (AWD): AWD is a water management technique for rice paddies where fields are alternately flooded and allowed to dry naturally for several days. Compared to continuous flooding, AWD can reduce water usage, thereby contributing to water resource conservation.
※3: Annual GHG emissions from the agricultural sector in the Philippines (approx. 54 million tons)
Reference: Philippine Department of Environment and Natural Resources (2023)
※4: GHG emissions from rice paddies in the Philippines (approx. 13 million tons)
Reference: Journal of Food, Agriculture and Environment (2016)
※5: Leyte Province rice paddy area and rice production
Reference: PhilRice Ricelytics (2024)
※6: Visayas State University: Established in 1924, Visayas State University is a public university in the Philippines. With its origins as an agricultural college, it has continuously focused on agricultural technology research and dissemination. Its main campus is in Baybay, Leyte, and it has a long history of producing diverse innovations in crop and livestock production, crop protection, plant breeding, post-harvest technology, food processing, and biotechnology.
URL：https://www.vsu.edu.ph/
※7: GX-ETS: Green Transformation League and Emission Trading Scheme.
◆ Green Carbon, Inc.
Representative ：Jun Okita, CEO
Location ：Isal AKASAKA607, 5-2-33 Akasaka, Minato-ku, Tokyo
Establishment ：December 2019
Business ：Carbon credit creation and sales business, agriculture-related business, environment-related business, other related businesses and ESG consulting business
URL ： https://green-carbon.co.jp/
◆Introduction to Green Carbon, Inc.
Green Carbon operates with the vision of “Saving the Earth with the Power of Life,” providing comprehensive support from carbon credit creation, registration, to sales. Additionally, we are involved in agriculture-related businesses, research and development, ESG consulting, among others. Our main focus is on generation carbon credits through methane gas reduction in rice paddies, where we have obtained certification for J-Credits, the first and largest in Japan (approximately 6,220 tons), and plan to expand to around 50,000 hectares in the fiscal year 2024. We also offer a service called “Agreen” that integrates credit registration, application, and sales into one platform, simplifying procedures such as application registration and document preparation, thus reducing the workload for credit creators.