Generated approximately 11,500 tons of J-Credits over eight years in Hokkaido — equivalent to the emissions of 12,000 cattle.
Green Carbon Inc. (CEO: Jun Okita, hereinafter referred to as “Green Carbon”), a company engaged in the development and sale of nature-based carbon credits, is pleased to announce the launch of a new dairy farming project (hereinafter referred to as “the Project”) in collaboration with Megmilk Snow Brand Co., Ltd. (President and CEO: Masatoshi Sato, hereinafter “Megmilk Snow Brand”) and The Hokkaido Bank, Ltd. (President: Yuji Kanema, hereinafter “Hokkaido Bank”). This Project marks Japan’s first and largest initiative aimed at generating J-Credits from livestock manure.
Under this initiative, approximately 11,500 tons of J-Credits are expected to be generated over an eight-year period in Hokkaido—equivalent to the annual greenhouse gas emissions of 1,500 cattle. To date, only approximately 149 tons of J-Credits derived from dairy farming have been issued nationwide over the past ten years. This project aims to generate approximately 77 times more dairy-derived J-Credits, representing a significant milestone in the decarbonization of the livestock sector.
◆The background behind the launch of this project
To date, Green Carbon has supported rice farmers through the Rice Farming Consortium, facilitating collective applications to the J-Credit Scheme. Nature-based carbon credits hold immense potential beyond rice paddies, extending to forestry, biochar, livestock and dairy farming, and carbon farming. In response to this diversity, we have launched the Nature-Based Consortium*¹, a platform designed to comprehensively support producers participating in various nature-based carbon credit projects. In Hokkaido, we established a local office in November 2024, with a particular focus on dairy farming initiatives. As part of this effort, we successfully completed Japan’s first program-based registration under the J-Credit Scheme using the methodology “Modification of Manure Management Practices (AG-002)” in January 2025.
Building on this background, Green Carbon was introduced to Megmilk Snow Brand through The Hokkaido Bank, with whom we had already been collaborating in Hokkaido, leading to the launch of this dairy farming project. In this initiative, Hokkaido Bank plays a key role by introducing participating dairy farmers from its client network, while Megmilk Snow Brand will purchase the dairy-derived J-Credits generated through the project. Green Carbon is responsible for the registration, application, and issuance of J-Credits, as well as providing ongoing support to the participating dairy farmers.
◆Market Environment and Challenges Facing the Dairy Sector
The livestock sector faces several pressing challenges, including:
(1) Greenhouse gas (GHG) emissions,
(2) Rising feed costs and the decline in dairy farms, and
(3) Odor-related issues.
| (1) GHG Emissions |
|---|
| The livestock industry emits approximately 15 million tons of GHG annually in Japan, with dairy and beef cattle accounting for about 80% of that total. Among these, dairy cows produce twice the emissions of beef cattle, with each dairy cow emitting around 5 tons of CO₂-equivalent per year. |
| (2) Rising Feed Costs and Decline in Dairy Farms |
|---|
| Feed accounts for nearly half of total production costs in dairy farming. Over the past 16 years, feed prices have more than doubled, putting significant financial pressure on farmers. As a result, the number of dairy farms has declined by more than 50%, dropping from approximately 20,000 farms to 9,900 in just 15 years. |
| (3)Odor Issues |
|---|
| Odor from livestock has become a growing social concern, especially for large-scale dairy operations. In some cases, the complaint rate exceeds 10% for large farms. Due to the frequency of complaints, local governments in certain municipalities have begun implementing odor control measures. |
◆Mechanism for Generating J-Credits Derived from Livestock Manure
The methodology used in this initiative for J-Credit generation is based on the “Change in Livestock Manure Management Method (AG-002).” By introducing forced fermentation systems for livestock manure from chickens, pigs, and cows, the speed of fermentation is increased, leading to reductions in methane (CH4) and nitrous oxide (N2O) emissions. The resulting reduction in emissions is certified as J-Credits.
Currently, about 60% of farmers manage manure fermentation through heap fermentation, which takes around six months and requires significant labor. By introducing forced fermentation systems, the amount of labor required by dairy farmers can be reduced by half. However, the introduction of forced fermentation systems involves significant upfront costs for equipment, which is why very few dairy farmers currently use this methodology.
To address this challenge, Green Carbon has developed a project-based dairy farming initiative that covers the costs of introducing forced fermentation systems, as well as the expenses for J-Credit registration, application, and certification. This approach helps solve the problem of high equipment costs and contributes to resolving the previously mentioned challenges (1-3). Additionally, by distributing the revenue from the sale of J-Credits to participating dairy farmers, this initiative also provides them with a source of additional income.
*¹ Nature-Based Consortium:
This consortium is a new framework that not only supports methane reduction projects in rice paddies through the existing rice farming consortium but also utilizes various natural resources such as forests, dairy farming, livestock, biochar, and carbon farming to create and sell carbon credits.
In this consortium, carbon credits generated by participating farmers and producers are purchased by local businesses, enabling the realization of a “local production and local consumption” of carbon credits. When local businesses buy carbon credits generated locally, it creates an economic cycle within the region, leading to increased income for farmers and producers, while businesses can contribute to climate change mitigation by supporting local initiatives. The consortium aims to generate 500,000 tons of carbon credits by 2025. This scale of credit generation is equivalent to the total emissions from fuel combustion in Hokkaido’s agriculture sector.
◆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
◆Introduction to Green Carbon, Inc.
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.
◆Snow Brand Megmilk Co., Ltd.
Representative ：Masatoshi Sato, Representative Director and President
Location : 5-1, Yotsuya Honshio-machi, Shinjuku-ku, Tokyo
Establishment ：October, 2009
Business：Manufacture and sale of milk, dairy products, and food items, etc.
URL：https://www.meg-snow.com/english/
◆Hokkaido Bank, Ltd.
Representative: President, Yuji Kenma
Location : 2-5, Odori West 2-chome, Chuo-ku, Sapporo City, Hokkaido
Established : March, 1951
Business : Banking and Financial Services