Green Carbon Inc. (CEO: Jun Okita, hereinafter “Green Carbon”), a company developing and selling nature-based carbon credits, has established the “Paddy Field JCM Consortium” (hereinafter “the Consortium”) together with Idemitsu Kosan Co., Ltd., Osaka Gas Co., Ltd., Kanematsu Corporation, Sompo Japan Insurance Inc., Toho Gas Co., Ltd., Fuyo General Lease Co., Ltd., and Mitsubishi UFJ Trust and Banking Corporation. The Consortium is Japan’s first private-sector initiative formed to promote the expansion of paddy-field-based credits under the Joint Crediting Mechanism (JCM).
The Consortium aims to contribute to the dissemination of JCM projects in the agricultural sector in partner countries (※1) by analyzing data from projects in the Philippines utilizing Alternate Wetting and Drying (AWD) technology—specifically, how AWD affects rice yields and to what extent weather conditions impact its implementation.
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◆Background of the Consortium
The Joint Crediting Mechanism (JCM) is a bilateral framework through which Japan and partner countries cooperate to reduce greenhouse gas (GHG) emissions and share the resulting credits. In February 2025, the Japanese government set targets to secure cumulative GHG emission reductions or removals equivalent to approximately 100 million t-CO₂ by FY2030 and 200 million t-CO₂ by FY2040 through the JCM, with the mechanism serving as a key measure toward achieving Japan’s NDCs (※2).
To date, there have been no issued JCM credits in the agricultural sector, although initiatives toward credit issuance are advancing. The Philippines—where AWD technology has been officially approved under the JCM framework between Japan and the Philippines—is one of the most advanced partner countries in developing agricultural JCM credit projects.
AWD is a water management technique for rice cultivation in which irrigation water is periodically drained and refilled. Since continuously flooded paddies are prone to methane emissions, introducing intermittent drying periods can reduce methane generation. Studies have shown that depending on soil conditions, AWD can reduce methane emissions by approximately 30% and increase rice yields (※3). However, AWD implementation is highly weather-dependent, and its relationship with rainfall patterns and typhoons has not yet been sufficiently analyzed.
◆Overview of the Consortium
Conceptualized by Osaka Gas Co., Ltd. and jointly established with Green Carbon and the other participating companies, the Consortium aims to promote the expansion of paddy-field-based JCM credits by analyzing project data and disseminating information on both value and risks.
By sharing empirical JCM data on co-benefits such as yield improvement with government officials and farmers in partner countries, the Consortium seeks to enhance understanding and encourage further participation in JCM initiatives.
In addition, by analyzing the relationships between AWD, rainfall, and typhoons, the Consortium will visualize weather-related risks and improve project predictability. This, in turn, will foster investment and ensure transparent information disclosure for credit buyers to conduct transactions with confidence.
The Consortium will begin with the eight founding companies and plans to expand membership to include additional corporate members aligned with its purpose. The Ministry of the Environment and the Ministry of Agriculture, Forestry and Fisheries of Japan will participate as observer.
<Comments from the Ministry of the Environment and the Ministry of Agriculture, Forestry and Fisheries>
“AWD represents a highly promising technology for achieving substantial GHG reductions under the JCM and serves as a pioneering example of a Nature-based Solution (NbS). It is extremely meaningful that private companies are taking the lead, collaborating openly to address shared challenges and foster market development.
Through this initiative, we expect deeper engagement with stakeholders—including partner country governments—and progress in overcoming challenges related to JCM implementation for AWD projects. We also hope that the Consortium will remain open to new participants beyond its founding members and continue to develop sustainably.
The so-called ‘private-sector JCM,’ formed without government financial support, positions businesses at the center of climate action. The Government of Japan, including the Ministry of the Environment and the Ministry of Agriculture, Forestry and Fisheries, strongly supports the expansion of such private-led JCM projects.”
◆Future Outlook
Green Carbon is actively engaged in nature-based carbon credit creation projects across Southeast Asia, including forest conservation, rice paddies, mangrove restoration, cattle methane reduction, and biochar. In the Philippines, the company focuses particularly on AWD-based JCM projects to reduce methane emissions from rice paddies, which are being implemented based on the methodology approved in February 2025.
Looking ahead, Green Carbon will continue contributing to the local economy and climate resilience by enhancing farmers’ incomes through additional revenue from carbon credits while stabilizing yields amid weather variability and supporting the growing demand for JCM credits both in Japan and abroad.
(※1) Partner Countries: Nations that have entered into bilateral agreements with Japan to jointly promote GHG reduction projects and utilize the resulting emission reductions under the Paris Agreement.
(※2) NDC (Nationally Determined Contribution): Climate goals submitted and updated every five years under the Paris Agreement. Japan has set targets to reduce GHG emissions by 60% by FY2035 and 73% by FY2040 compared to FY2013 levels, as approved by the Cabinet and submitted to the United Nations on February 18, 2025.
(※3) Source: Ministry of Agriculture, Forestry and Fisheries, “Methane Reduction in Rice Paddies through Alternate Wetting and Drying (AWD)” (June 2025).
◆Participating Companies
◆Green Carbon Inc.
Representative: Jun Okita, CEO
Head Office: PREX North 9F, 2-3-2 Kojimachi, Chiyoda-ku, Tokyo, Japan
Established: December 2019
Business Activities: Development and sales of carbon credits, agriculture-related projects, environmental projects, other related businesses, and ESG consulting
Website: https://green-carbon.co.jp/en/
◆Idemitsu Kosan Co., Ltd.
Representative: Noriyoshi Sakai, President and CEO
Head Office: 1-2-1 Otemachi, Chiyoda-ku, Tokyo, Japan
Established: February 20, 1948
Business Activities: Fuel oil, basic chemicals, high-performance materials, power and renewable energy, and resource development
◆Osaka Gas Co., Ltd.
Representative: Masataka Fujiwara, President
Head Office: 4-1-2 Hiranomachi, Chuo-ku, Osaka, Japan
Established: April 1897
Business Activities: Gas production and sales, power generation and sales, and related services
◆Kanematsu Corporation
Representative: Yoshinari Miyabe, President
Head Office: JP Tower, 2-7-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Established: August 1889
Business Activities: Trading and services in ICT solutions, electronics and devices, food, steel and materials, and mobility and aerospace
◆Sompo Japan Insurance Inc.
Representative: Koji Ishikawa, President and CEO
Head Office: 1-26-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo, Japan
Established: October 1888
Business Activities: Non-life insurance and related services
◆Toho Gas Co., Ltd.
Representative: Satoshi Yamasaki, President
Head Office: 19-18 Sakurada-cho, Atsuta-ku, Nagoya, Japan
Established: June 26, 1922
Business Activities: Gas and electricity business, among others
◆Fuyo General Lease Co., Ltd.
Representative: Hiroaki Oda, President and CEO
Head Office: 5-1-1 Kojimachi, Chiyoda-ku, Tokyo, Japan
Established: May 1969
Business Activities: Corporate leasing, financing, and solution services
◆Mitsubishi UFJ Trust and Banking Corporation
Representative: Hiroshi Kubota, President
Head Office: 1-4-5 Marunouchi, Chiyoda-ku, Tokyo, Japan
Established: March 1927
Business Activities: Banking, real estate, asset management, trust and securities agency, inheritance-related, and comprehensive financial solutions
◆About Green Carbon
Guided by the vision of “Harnessing the power of life to save the Earth,” Green Carbon develops and supports projects that generate, register, and sell nature-based carbon credits both in Japan and abroad. The company is also engaged in agriculture-related businesses, R&D initiatives, and ESG consulting.
Its business activities span Japan, Southeast Asia, Australia, and South America, creating credits from rice paddies, biochar, forest conservation, carbon farming, mangrove planting, and cattle methane reduction. In Japan, Green Carbon obtained certification in FY2023 for the country’s first and one of the largest-scale rice paddy J-Credit projects (approx. 6,220 t). In FY2024, the company plans to expand this initiative to around 40,000 ha (approx. 80,000 t).
Green Carbon also provides “Agreen,” a one-stop platform service that streamlines the entire process of credit registration, application, and sales. By simplifying procedures and documentation, the service reduces the administrative burden on credit creators.