The project seeks to implement demonstrations in rice paddy fields across 21 prefectures.
Green Carbon Corporation (CEO: Jun Ohkita, hereinafter “Green Carbon”), a company engaged in nature-based carbon credit creation and and sales, is pleased to announce the launch of a project (hereinafter “this project”) in collaboration with Osaka Gas Co., Ltd. (President: Masataka Fujiwara, hereinafter “Osaka Gas”). This project will investigate the impact on biodiversity from extended mid-season drainage (the practice of draining water from rice paddies).
Moving forward, Green Carbon will utilize its network within the rice farming consortium to conduct surveys in rice paddy fields across 21 prefectures. The project will analyze both the positive and negative effects of extended mid-season drainage on biodiversity.
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◆Background of the Project and Partnership with Osaka Gas
News Release
FOR IMMEDIATE RELEASE
Green Carbon Partners with Osaka Gas to Launch Biodiversity Impact Study in Japanese Rice Paddies
TOKYO, [Date of Release] – Green Carbon Inc., a leader in creating nature-based carbon credits, today announced a collaborative research project with Osaka Gas Co., Ltd. to assess the biodiversity impacts of extended mid-season drainage in rice paddies. This initiative aims to address concerns from the agricultural community and corporate partners regarding the potential ecological effects of methane reduction practices.
Background of the Project and Partnership with Osaka Gas
Green Carbon is dedicated to generating carbon credits from natural sources, with a primary focus on Southeast Asia. The company’s diverse portfolio includes projects in forest conservation, rice paddies, mangrove reforestation, bovine eructation reduction, and biochar. Notably, Green Carbon’s domestic rice paddy project achieved Japan’s first and largest J-Credit certification for rice paddies in fiscal year 2023, amounting to approximately 6,220 tons of carbon credits. The project is set to expand significantly, targeting approximately 40,000 hectares (an estimated 80,000 tons of credits) in fiscal year 2024, and aiming for 100,000 hectares (an estimated 200,000 tons) in fiscal year 2025.
While the practice of extending the mid-season drainage period in rice paddies is effective for reducing methane emissions, farmers and corporations have raised valid concerns about its potential risks to local ecosystems and its impact on biodiversity. Addressing these concerns is crucial to ensure that the positive climate impact of methane reduction does not come at an ecological cost.
To tackle this challenge, Green Carbon is leveraging the expertise of Osaka Gas, which possesses significant know-how in biodiversity assessment in rice paddies. This joint project will involve collecting and analyzing water samples (from the paddy fields) before and after the mid-season drainage period in designated rice paddies. By comparing biodiversity lists from before and after the intervention, the study will analyze the effects on the ecosystem. The findings will help in prioritizing conservation efforts and verifying the effectiveness of environmental measures. The initial phase of this demonstration project will be rolled out across rice paddies in 21 prefectures during fiscal year 2025.
If this project successfully demonstrates that the extended drainage practice has no negative impact on the ecosystem, it will add significant value to the J-Credits generated by Green Carbon’s rice paddy projects. This, in turn, is expected to encourage companies committed to promoting biodiversity to actively utilize these J-Credits.
〇Sample Image: Biodiversity List
◆Future Outlook
Through this project, Green Carbon will not only investigate the biodiversity impacts in domestic rice paddies but also extend these surveys to its large-scale rice paddy projects overseas, particularly in Southeast Asia.
The company is heavily focused on projects that reduce methane emissions and generate carbon credits through the introduction of Alternate Wetting and Drying (AWD)*¹ in rice paddies, primarily in Southeast Asia. Numerous projects have already been established in the Philippines, Vietnam, and Thailand.
In a world-first for rice paddy initiatives, Green Carbon’s project in Vietnam was accepted and listed for both major voluntary credit standards (Verra and Gold Standard) in April 2025. In the Philippines, the company is developing multiple rice paddy projects utilizing the Joint Crediting Mechanism (JCM)*². As biodiversity considerations contribute directly to the added value of carbon credits, Green Carbon aims to leverage its achievements in Southeast Asia to expand these efforts globally.
*1: Alternate Wetting and Drying (AWD) Alternate Wetting and Drying is a water management technique for rice cultivation where fields are intermittently filled with water and then naturally dried every few days, based on the water level. Compared to continuous flooding, AWD reduces water consumption, thereby contributing to the conservation of water resources.
*2: Joint Crediting Mechanism (JCM) The JCM is a system in which Japan contributes to the reduction of greenhouse gas emissions in partner countries by facilitating the diffusion of its advanced decarbonization technologies. The resulting emission reductions are then used to help both Japan and the partner country achieve their respective climate targets. Thailand and Japan initiated a JCM partnership in November 2015, enabling the implementation of joint projects between the two nations.
◆ Green Carbon, Inc.
Representative ：Jun Okita, CEO
Location ：2-3-2 Kojimachi, Chiyoda-ku, Tokyo, Hanzomon PREX North 9F WeWork
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/
◆About Green Carbon, Inc. Business
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.
◆Osaka Gas Co., Ltd.
Representative: Masataka Fujiwara, President and Representative Director
Location: 4-1-2 Hiranomachi, Chuo-ku, Osaka
Established: April 10, 1897
Business Activities: Production and sale of gas, generation and sale of electricity, etc.
URL ： https://www.daigasgroup.com/
◆About Osaka Gas’s Business
Under the “Energy Transition 2050” plan announced in February 2025, the Daigas Group is committed to developing technologies and services that contribute to a decarbonized society. By striving to solve societal challenges, beginning with climate change, the Daigas Group aims to be a corporate group that continues to contribute to the “further evolution” of life and business.