— Aiming to generate approximately 4 million tons of carbon credits over 7 years until 2032 —
Green Carbon Inc. (CEO: Jun Okita, hereinafter referred to as Green Carbon), which operates a nature-based carbon credit creation and sales business, announces that its application for the VM0051 “Project for Methane Gas Reduction by Introducing AWD*1 in Rice Paddies” (hereinafter referred to as the Project), underway in An Giang province, Southern Vietnam, was accepted and listed by the voluntary carbon credit standard Verra*2 on April 1st, marking a world’s first for this project type.
In An Giang province, Green Carbon has completed a demonstration covering three crop cycles throughout the year on approximately 100 hectares of paddy fields. Based on these results, the company plans to expand the project area to approximately 116,000 hectares over the 7 years until 2032, aiming to generate approximately 4 million tons of carbon credits.
◆ Background of this Project Registration
Green Carbon is engaged in creating nature-derived carbon credits, primarily in Southeast Asia, and is broadly developing nature-derived carbon credit creation projects including forest conservation, rice paddies, mangrove reforestation, cattle burp reduction, and biochar projects. While developing carbon credit creation projects suited to the characteristics of natural resources in each region, the company also utilizes satellite data for suitable site selection and monitoring, thereby achieving efficient and highly transparent project management.
On February 3, 2023, Verra, an international carbon offset standards management organization, announced a temporary suspension of carbon credit registration under the Verified Carbon Standard (VCS) related to methane gas reduction from rice straw*3. This measure was taken because an internal interim review of the methodology determined that adjustments were necessary. Based on this background, on February 28, 2025, the carbon credit issuance standard VCS issued the carbon credit methodology “VM0051 Improved Management in Rice Production Systems” concerning greenhouse gas emission reductions in rice cultivation, thereby reinstating the system.
Based on the above, Green Carbon applied to Verra for the project in An Giang province, which was accepted, achieving the world’s first listing this time. In An Giang province, the demonstration covering three crop cycles throughout the year has been completed on approximately 100 hectares of paddy fields. Based on these results, the company plans to expand the area to approximately 116,000 hectares over the 7 years until 2032, aiming to generate approximately 4 million tons of carbon credits.
○Reference: Verra Official Website – Project Registration
○URL: https://registry.verra.org/app/projectDetail/VCS/5469
◆ Future Outlook
① Contribution to Vietnam’s 1 Million Hectare Project
Announced in November 2023, the “1 Million Hectare Project,” led by the Vietnamese government as a top priority, aims to promote high-quality and low-environmental-impact rice cultivation across 1 million hectares of the Mekong Delta region’s total rice paddy area by 2030. Vietnam’s Ministry of Agriculture and Rural Development (MARD), which has functions similar to Japan’s Ministry of Agriculture, Forestry and Fisheries, is leading the implementation in collaboration with international organizations and development partners.
Green Carbon is advancing its methane gas reduction project in Vietnamese rice paddies using AWD as its main business. Having established its Vietnam branch in August 2024 and currently holding MOUs in 22 provinces where project development is underway, Green Carbon is officially participating in the “1 Million Hectare Project” as the first Japanese company. Beyond generating carbon credits, Green Carbon is promoting initiatives to improve farmers’ total income by supporting the establishment of rice production management systems that meet Japanese and international export standards.
As part of the “1 Million Hectare Project,” Green Carbon is currently conducting pilot demonstrations of methane gas reduction through AWD introduction in rice paddies in three areas of Vietnam’s Mekong Delta region (Can Tho city, Bac Lieu province, Soc Trang province) in collaboration with the Cuu Long delta Rice Research Institute (CLRRI*4), a rice research institute in the region. In each area, positive results, such as methane gas reduction and increased rice yield through AWD introduction, have been observed in the first crop cycle of fiscal year 2025.
② Promoting the Export of Japonica Rice
Currently, Japan is facing issues of soaring rice prices and shortages due to a combination of various factors, including the government’s acreage reduction policy and intermittent abnormal weather. To solve this problem, utilizing imported rice is necessary, but it is difficult to procure imported rice from overseas due to Japan’s high rice quality standards.
Therefore, Green Carbon is not only creating carbon credits through this project but is also collaborating with Vietnamese partners, including Loc Troi Group*5 (which holds the largest rice production area in Vietnam) and local export businesses, to improve farmers’ pesticide management, production systems, and rice quality. We will actively promote the export of Japonica rice that meets Japanese quality standards, thereby contributing to solving Japan’s rice shortage problem.
*1: AWD
Intermittent irrigation (AWD) is a method in which water is flooded and allowed to dry naturally every few days, based on the water level of the paddy field. Compared to continuous flooding, intermittent irrigation (AWD) can reduce water usage and contribute to the conservation of water resources.
*2: Verra
Founded in 2005 by three organizations: The International Emissions Trading Association (IETA), The World Business Council for Sustainable Development (WBCSD), and The Climate Group. It is currently managed by a private entity named Verra. VCS (Verified Carbon Standard) refers to the world’s most widely used standard for certifying credits issued from greenhouse gas reduction projects undertaken by companies, organizations, and individuals. It allows greenhouse gas emission reductions or removals to be treated as credits and has gained attention in recent years. Credits certify that the greenhouse gas reductions are credible and make them tradable like general commodities.
*3: Methodology Suspension
https://verra.org/verra-initiates-review-of-unfccc-cdm-rice-cultivation-methodology/
*4: CLRRI
A government agency based in Vietnam’s Mekong Delta region, it is a research institute specializing in rice cultivation. It plays a significant role in Vietnam’s agricultural science and promotes innovative research.
*5: Loc Troi Group
Started its agricultural seed business selling hybrid corn and hybrid rice seeds from June 2005 and has been expanding its production and business activities in the agricultural sector since 2010. It provides superior seed sets that bring increased productivity and high efficiency per cultivated area to farmers across Vietnam, helping to improve farmers’ quality of life and prosperity. It also aims to finance technology related to smart agriculture, striving to enhance production efficiency and business outcomes for farmers and the business community.
◆ 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/
◆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
Business ：Carbon Credit Generation and Sales Business, Agriculture-related Business
◆ 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 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 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.
◆ 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/
Wantedly ：https://www.wantedly.com/companies/greencarbon2019