~By 2027, we plan to implement AWD for 10 million hectares of paddy rice and biochar at a scale of 100,000 tonnes, aiming to reduce CO₂ emissions by approximately 50 million tonnes annually.~
Green Carbon,In. (CEO: Jun Okita, hereinafter Green Carbon), which develops nature-based carbon credit creation and sales businesses, presented at the 2nd AZEC International Conference to Develop Carbon Markets (※１), hosted by Japan’s Ministry of Economy, Trade and Industry and the Ministry of the Environment in Kobe on Thursday, August 28, 2025.
At the event, we shared its vision for greenhouse gas (GHG) reduction in the agricultural sector and the large-scale creation of carbon credits. Green Carbon aims to implement Alternate Wetting and Drying (AWD) on 10 million hectares of rice paddies and produce 100,000 tons of biochar by 2027, targeting an annual CO₂ reduction of approximately 50 million tons.
○Ministry of Economy, Trade and Industry
https://www.meti.go.jp/policy/energy_environment/global_warming/azec/azec-dcm/2nd_azec-dcm.html
○Ministry of the Environment（Press Release）
https://www.env.go.jp/press/press_00529.html
◆The Current Status of the JCM in Japan and Initiatives in the Agricultural Sector
The Joint Crediting Mechanism (JCM) is a scheme whereby Japan and partner countries collaborate to reduce greenhouse gas emissions, sharing the resulting benefits between them. In Japan, the Cabinet decided in February this year to utilise the JCM to secure cumulative greenhouse gas emission reductions and removals of approximately 100 million tonnes of CO2 equivalent by fiscal year 2030 and approximately 200 million tonnes of CO2 equivalent by fiscal year 2040. It is also planned to utilise the JCM as a means to achieve the Nationally Determined Contribution (NDC).
By August 2025, Japan had established Joint Crediting Mechanisms (JCM) with 30 partner countries, primarily reducing greenhouse gas emissions in the energy sector. However, no JCM credits have been issued in the agricultural sector, and efforts are underway to enable their issuance. Notably, the initiative to reduce methane emissions from rice paddies in the Philippines is one of the most advanced projects among partner countries.
◆Event Overview
| Meeting name | 2nd Asia Zero Emission Community (AZEC) AZEC International Conference to Develop Carbon Markets |
| Organiser | the Ministry of Economy, Trade and Industry, the Ministry of the Environment |
| Date and time | Thursday, 28 August 2025 |
| Location | Kobe |
| Participants | ○Japanese Government Participants: Ministry of Economy, Trade and Industry: Naoki Kasuya, Senior Director for Energy and Environmental Policy Ministry of the Environment: Michihiro OI, Director, Policy Planning Divison Ministry of Agriculture, Forestry and Fisheries: Kyoko Nishi, Director, Policy Planning Divison ○AZEC Partner Countries: Australia, Brunei, Cambodia, Indonesia, Japan, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam |
| Agenda | Session 1: Regional Status and Initiatives on Carbon Pricing Session 2: Developments in the International Carbon Market – JCM and Other Bilateral Cooperation Session 3: Implementation of Article 6 of the Paris Agreement – Infrastructure (Registry) Session 4: Development of New Approaches for Carbon Credits (Methodologies in New Areas) Session 5: Regional Cooperation among AZEC Partner Countries |
◆Background to the Presentation
AZEC-DCM (※2) is held with the aim of establishing a high-quality carbon credit market through collaboration among Asian countries, and this marks its second iteration. Green Carbon presented at the session titled ‘New Approaches to Carbon Credits’.
Green Carbon is developing projects combining reduced methane emissions from rice paddies through alternate wetting and drying (AWD) with soil improvement and organic fertilisation using biochar. The company presented the potential for generating credits from the agricultural sector.
◆Key points of the presentation
| ●AWD Water Management Technology |
| Demonstrated average methane reduction of 55% and average yield increase of 5.5% Currently expanding operations across Asian countries including Vietnam, the Philippines and Thailand |
| ●Utilisation of Biochar |
| Plans to establish an annual production capacity of 100,000 tonnes Achieving both enhanced farmer productivity and credit generation through organic fertiliser |
| ●MRV Enhancement |
| Precise monitoring using satellite and agricultural data management applications |
| ●Potential for large-scale deployment |
| Plans to achieve 10 million hectares of AWD for paddy rice and 100,000 tonnes of biochar by 2027 Aiming for annual CO₂ reductions of approximately 50 million tonnes |
◆Future Initiatives
Green Carbon will collaborate with governments and businesses in AZEC member countries to advance the following initiatives, aiming to become one of the largest natural carbon credit developers in Asia and Oceania.
- International credit transfers through the JCM (Joint Crediting Mechanism) and Article 6.2
- Large-scale agricultural credit creation through a pre-investment model Large-scale Agricultural Credit Creation through a Pre-investment Model
- Establishing a mechanism where farmers, local communities and investors achieve an “All-Win” outcome
※1: A framework for cooperation among 11 AZEC partner countries (Australia, Brunei, Cambodia, Indonesia, Japan, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) towards achieving carbon neutrality/net-zero emissions within the region.
※2：AZEC International Conference to Develop Carbon Markets
※3：Alternate-Wet-and-Dry Irrigation (AWD)
Alternate-wetting-and-drying (AWD) is a technique that involves repeatedly flooding and allowing natural drying of paddy fields every few days, using the water level as a guide. Compared to continuous flooding, AWD reduces water usage and contributes to the conservation of water resources.
◆Green Carbon Inc.
Representative: Jun Okita, CEO
Founded: 2019
Head Office: Hanzomon PREX North 9F, 2-3-2 Kojimachi, Chiyoda-ku, Tokyo
Business Activities: Carbon credit generation and sales, agricultural-related business, environmental-related business, and other related activities, including ESG consulting
URL ： https://green-carbon.co.jp/en/
◆Green Carbon Business Overview
Green Carbon operates with the vision of “Saving the Earth through the power of life,” offering end-to-end support for the creation, registration, and sales of nature-based carbon credits both domestically and internationally. In addition, the company is engaged in agriculture-related businesses, R&D projects, and ESG consulting services.
Its business footprint spans Japan and Southeast Asia, extending to Australia and South America, generating nature-based carbon credits from rice paddies, biochar, forest conservation, carbon farming, mangrove reforestation, and methane reduction from livestock.
In Japan, Green Carbon obtained the first and largest-ever J-Credit certification for rice paddies in 2023 (approximately 6,220 tons), and expanded the project to around 40,000 hectares (about 80,000 tons) in 2024.
Green Carbon also provides “Agreen”, a one-stop platform that streamlines the entire process from credit registration and application to sales, simplifying procedures and documentation while significantly reducing the workload for credit creators.
◆Social media
Carbon Credits Journal：https://biz-journal.jp/carboncredits/
Linkedin ：https://www.linkedin.com/company/green-carbon-inc/
Facebook：https://www.facebook.com/profile.php?id=61557429326458
X ：https://mobile.x.com/GreenCarbon2019
Wantedly：https://www.wantedly.com/companies/greencarbon2019
Youtube ：https://www.youtube.com/channel/UCYO4WnGOHDaVB1ikxheZasA
note ：https://note.com/green_carbon/