~Low-Carbon Agriculture Project Utilizing the Japan–Indonesia Joint Crediting Mechanism (JCM)~
Green Carbon Inc. (Representative Director: Jun Okita, hereinafter “Green Carbon”), a company engaged in the development and sales of nature-based carbon credits, has signed a Memorandum of Understanding (MOU) with Bogor Agricultural University (hereinafter “IPB”) in West Java, Indonesia. The partnership aims to promote methane-reduction projects in rice cultivation through the introduction of Alternate Wetting and Drying (AWD)※1 technology, contributing to greenhouse gas reduction and the advancement of sustainable agriculture.
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◆ Background of the Partnership
Green Carbon has been developing nature-based carbon credit projects primarily across Southeast Asia, covering a wide range of fields such as forest conservation, rice paddies, mangrove restoration, cattle methane reduction, and biochar utilization. By designing projects tailored to local natural resources and applying satellite data for site selection and monitoring, the company ensures efficient and transparent operations.
In Indonesia, it is estimated that the potential value of carbon credits generated from approximately 10 million hectares of rice paddies could reach around JPY 42.8 billion※2. Building upon this potential, Green Carbon has launched a methane-reduction project in West Java using AWD (Alternate Wetting and Drying) technology, leveraging the Japan–Indonesia Joint Crediting Mechanism (JCM) and Indonesia’s emerging carbon market.
○the execution of the agreement
◆ About West Java Province
Rice cultivation in Indonesia is one of the main sources of methane emissions, which constitute a major share of agricultural greenhouse gas (GHG) emissions in the country. West Java, characterized by a well-developed irrigation network and a large number of smallholder farmers, is an ideal region for introducing sustainable water management practices.
This project is expected to contribute to Indonesia’s Nationally Determined Contributions (NDCs) under the Paris Agreement, while also creating new income opportunities through carbon credits and enhancing scientific and technical capacity in low-carbon agricultural practices.
◆ Scope of the MOU
| Key Activities: |
|---|
| ・Measurement of methane (CH₄) emissions from rice cultivation systems ・Evaluation of AWD’s effectiveness in reducing water usage and GHG emissions ・Quantitative comparison between AWD and traditional continuous flooding methods |
Roles and Responsibilities:
| IPB | Experimental design, methane monitoring, data analysis, and academic/technical support |
| Green Carbon | Project coordination, technology implementation, carbon credit scheme development, and facilitation of collaboration with the carbon markets in Indonesia and Japan |
◆ About Bogor Agricultural University (IPB)
Bogor Agricultural University (IPB) is a national university in Indonesia specializing in agriculture, environmental science, marine science, and life science. Established in 1963 and renamed in 2019, IPB is dedicated to advancing sustainable development, food security, and climate resilience through education, research, and innovation.
https://ipb.ac.id
※1: AWD (Alternate Wetting and Drying)
AWD is a water management technique for rice cultivation that alternates between irrigation and natural drying based on water-level indicators. Compared to continuous flooding, AWD reduces water usage and contributes to water resource conservation.
※２: Credit potential estimation
Total paddy area: approx. 10,700,000 ha
Credit generation: 21,400,000 t-CO₂ (5 t-CO₂/ha)
Estimated value: approx. JPY 42.8 billion (based on JPY 2,000/t-CO₂)
◆ 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/
◆ 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.