Aims to reduce 400,000 tons of greenhouse gas emissions over 10 years
First-ever rice paddy project registered under the Joint Crediting Mechanism (JCM)
Green Carbon Inc. (CEO: Jun Okita, hereinafter referred to as “Green Carbon”), a company engaged in the creation and sale of nature-based carbon credits, has launched a carbon credit generation project in Batangas, Luzon Island, Northern Philippines. This project aims to reduce methane emissions from rice paddies.
The initiative seeks to become the first registered rice paddy project under the Joint Crediting Mechanism (JCM※1) between Japan and the Philippines. It involves the introduction of Alternate Wetting and Drying (AWD※1) irrigation in the targeted rice fields to achieve methane emission reductions. Following the approval of the methodology in early February 2025, a pilot demonstration covering approximately 600 hectares in Batangas has commenced as of January 2025. Over the next ten years, Green Carbon plans to expand the project area to a maximum of 10,000 hectares, expecting to generate a total of 400,000 tons of carbon credits.
In addition, Green Carbon is developing similar projects in seven provinces, including Bulacan, where the company has already initiated the project. Over the next few years, the company aims to expand its projects to one million hectares—over half of the total irrigated potential in the Philippines.
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Background of the Project Launch
Green Carbon has been actively engaged in nature-based carbon credit generation across Southeast Asia, implementing projects in diverse fields such as forest conservation, rice paddies, mangrove afforestation, methane reduction from livestock, and biochar projects. By developing carbon credit initiatives that align with the unique natural resources of each region and utilizing satellite data for site selection and monitoring, the company ensures efficient and transparent project operations.
In the Philippines, the agricultural sector emits approximately 54 million tons of greenhouse gases (GHG)(※3) annually, with rice paddies alone accounting for about 13 million tons, which represents 25% of total agricultural emissions(※4). Given this significant impact, emission reduction efforts in this sector are crucial.
Recognizing this need, Green Carbon has been collaborating with local research institutions since 2023 to develop a methane reduction project using AWD (Alternate Wetting and Drying) irrigation for rice paddies. The project is conducted in partnership with the University of the Philippines, where methane emission measurements and analyses are carried out to validate the project’s effectiveness. This initiative aims to support the Philippine government’s emission reduction strategies, promoting sustainable agricultural development while mitigating environmental impact.
Utilization of the Joint Crediting Mechanism (JCM)
This project is being implemented with the goal of registering under the Joint Crediting Mechanism (JCM). In early February 2025, a methodology for methane emission reduction from rice paddies was officially approved under the JCM between Japan and the Philippines. This marks the first-ever rice paddy methodology established under the JCM.
By registering the project under this methodology, it will enable the adoption of low-environmental-impact, productivity-enhancing farming practices in the Philippines, while also contributing to Japan’s GHG emission reduction commitments.
In Japan, JCM credits can now be applied to offset corporate emission surpluses under the GX-ETS (Green Transformation Emissions Trading Scheme※5 ), leading to increased demand for such credits. Additionally, potential trading on the Tokyo Stock Exchange Carbon Credit Market is under consideration, which is expected to improve market liquidity.
Taking these developments into account, Green Carbon aims to ensure the project’s economic viability while contributing to the decarbonization efforts of both the Philippines and Japan.
Related Releases
For related press releases regarding projects in the Philippines, please refer to the links below.
https://green-carbon.co.jp/tag/philippine/
◯ Left: Project Area Rice Fields, Right: Installation of Water Level Measurement Pipe
Future Outlook
Through this project, Green Carbon aims to accelerate the adoption of AWD (Alternate Wetting and Drying) irrigation across the Philippines, promoting agricultural practices that contribute to decarbonization. The company is already implementing similar projects in seven provinces, including Bulacan, and plans to gradually expand the initiative to approximately 1 million hectares of rice paddies nationwide by 2030. This expansion will maximize both decarbonization effects and farmers’ income.
Furthermore, with the approval of the JCM rice paddy methodology between Japan and the Philippines, Green Carbon intends to promote methodology development in other partner countries and lead project expansion across Southeast Asia.
※1: Alternate Wetting and Drying (AWD)
AWD is an irrigation technique where water is periodically applied and allowed to dry naturally over several days. Compared to continuous flooding, AWD reduces water consumption and contributes to water resource conservation.
※2: Joint Crediting Mechanism (JCM)
JCM is a system in which Japan promotes the adoption of advanced decarbonization technologies in partner countries, helping them reduce greenhouse gas emissions. The reduced emissions are then counted towards both countries’ emission reduction targets. Japan and Thailand initiated the JCM in November 2015, enabling bilateral project implementation.
※3: GHG Emissions in the Philippine Agricultural Sector (Approx. 54 Million Tons/Year)
Source: Philippine Department of Environment and Natural Resources (2023)
https://niccdies.climate.gov.ph/files/documents/The%20Philippines-%20NDC%20Implementation%20Plan%20-%20072024.pdf
※4: GHG Emissions from Rice Paddies in the Philippines (Approx. 13 Million Tons/Year)
Source: Journal of Food, Agriculture and Environment (2016)
https://www.researchgate.net/publication/273636139_Greenhouse_gas_emissions_from_rice_production_in_the_Philippines_based_on_life-cycle_inventory_analysis
※5: GX-ETS System
Japan’s first nationwide carbon emissions trading system, requiring companies to reduce their greenhouse gas emissions. Companies failing to meet reduction targets must purchase emission allowances from other companies. As of 2024, 747 companies are participating, with full-scale operations set to begin in 2026.
◆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/
◆Business Introduction of Green Carbon
Green Carbon operates with the vision of “Saving the Earth with the Power of Life”, by providing comprehensive support for the creation, registration, and sales of carbon credits in domestic and international markets. We are also expanding our business operations in wider industries including the agriculture, research & development, and ESG consulting. Our operations are primarily based in Japan and Southeast Asia, while currently expanding business in Australia and South America. We create naturally derived carbon credits from sources including water paddies, biochar, forest conservation, carbon farming, mangrove plantation, and methane from cattle eructation. Our main focus is on generating carbon credits through methane gas reduction in rice paddies, where we have obtained the first and largest certification for J-Credits in Japan (approximately 6,220 tons), and plan to expand to around 40,000 hectares (approximately 100,000 tons) 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 workload for credit creators.
◆GREEN CARBON JAPAN VIETNAM COMPANY LIMITED
Abbreviation ：GREEN CARBON JAPAN VIETNAM CO,. LTD
Representative ：Jun Okita, CEO
Location ：10th Floor, The Nexus Building, 34-3B Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Establishment ：August, 2024
Businesses ：Carbon credit creation and sales businesses, agriculture-related business
◆Social Media for Green Carbon
YouTube ：https://www.youtube.com/channel/UCYO4WnGOHDaVB1ikxheZasA
note ：https://note.com/green_carbon/
Facebook：https://www.facebook.com/profile.php?id=61557429326458
X ：https://mobile.x.com/GreenCarbon2019
Linkedin ：https://www.linkedin.com/company/green-carbon-inc/