〜Achieved a case of fuel oil offset through generating credits from mid-season drainage in the Fukushima–Aizu area〜
Green Carbon Inc. (CEO: Jun Okita, hereinafter “Green Carbon”), which develops a nature-based carbon credit generation and sales business, is working in collaboration with Cosmo Oil Marketing Co., Ltd. (President: Naoki Takayama, hereinafter “Cosmo”), a group company of Cosmo Energy Holdings Co., Ltd. (President: Shigeru Yamada). Under the framework of the “Rice Farming Consortium,” we are promoting the generation of mid-season drying credit in the Aizu area of Fukushima Prefecture, as well as a regional circular offset model.
This time, by utilizing the mid-season drying credit generated in the same area, the CO₂ emissions from fuel used by the tank trucks owned by Kita-Nihon Energy Co., Ltd., a Cosmo-affiliated distributor, will be offset. This scheme is the first case in Japan (※1) of fuel oil offset using locally generated and locally consumed carbon credits (“local production for local consumption”).
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◆ Implementation flow for this pilot
Cosmo Aizu Innovation Office (※2) has participated in the “Rice Farming Consortium” led by Green Carbon, supporting the spread of decarbonised farming practices such as extending the mid-season drying period through collaboration with farmers. Green Carbon provides comprehensive support for the calculation, registration, and sale of mid-dry period credits within the Aizu area. A portion of the credits generated is utilised to offset CO₂ emissions from the fuel used in tank lorries operated by the Aizu Direct Sales Department of Kita-Nihon Energy Co., Ltd., a Cosmo authorised dealer.
This demonstration project is expected to reduce approximately 100% of the CO₂ emissions generated by the department’s land transport division. Furthermore, a portion of the proceeds from the carbon credit transactions is returned to local farmers who cooperated in implementing the mid-season drying programme, thereby contributing to the revitalisation of the local economy. This has realised a decarbonisation model where value circulates within the region: GHG reduced locally → emissions offset by local businesses → revenue returned to local farmers.
◆ The “Rice-growing Consortium” Model for Achieving Regional Circulation
The Rice Cultivation Consortium, established and led by Green Carbon in April 2023, is an open platform aiming to create carbon credits derived from agriculture through the collaboration of businesses, local authorities and farmers, and to return the value generated to the local community.
This consortium will consolidate paddy field information from participating farmers and other stakeholders, handling the J-Credit application process collectively to significantly reduce farmers’ administrative burden and initial costs. Participants can earn supplementary income through carbon credits by undertaking environmental conservation activities such as extending the mid-season drying period.
・Credit generation (mid-season drying/AWD)
・Farmer support and extension activities
・Credit application and sales support
・Building a community reinvestment model
We aim to advance the above initiatives as a unified whole, simultaneously enhancing farmers’ profitability and fostering regional economic circulation.
○Rice Cultivation Consortium：https://inasakuconsortium.com
◆ What is Mid-season drying credit?
Mid-season drying credits refer to a scheme whereby extending the mid-season drying period in paddy fields reduces greenhouse gas (methane) emissions, with the resulting reduction being certified as credits by the state.
Methane is estimated to have approximately 25 times the greenhouse effect of CO₂, and this initiative is attracting attention as a method for reducing emissions originating from agriculture. Green Carbon provides support for the calculation and registration of mid-season drying credits under the J-Credit system, promoting their adoption in a form that enables companies to utilise them for offsetting their own emissions.
Starting with this case, Green Carbon will advance the development of a new framework that simultaneously achieves corporate decarbonisation and regional revitalisation through a “local production for local consumption” model, utilising locally generated credits within the region.
※1：Searching by Cosmo
※2：Cosmo Press Release dated 21 May 2021: ‘Regarding the Establishment of the Aizu Innovation Office’
https://www.cosmo-energy.co.jp/ja/information/topics/2021/210521-1.html
◆ Green Carbon Inc.
Representative: Jun Okita, CEO
Head Office: PREX North 9F, 2-3-2 Kojimachi, Chiyoda-ku, Tokyo, Japan
Established: December 2019
Business Activities: Development and sales of carbon credits, agriculture-related projects, environmental projects, other related businesses, and ESG consulting
Website: https://green-carbon.co.jp/en/
◆ About Green Carbon
Guided by the vision of “Harnessing the power of life to save the Earth,” Green Carbon develops and supports projects that generate, register, and sell nature-based carbon credits both in Japan and abroad. The company is also engaged in agriculture-related businesses, R&D initiatives, and ESG consulting.
Its business activities span Japan, Southeast Asia, Australia, and South America, creating credits from rice paddies, biochar, forest conservation, carbon farming, mangrove planting, and cattle methane reduction. In Japan, Green Carbon obtained certification in FY2023 for the country’s first and one of the largest-scale rice paddy J-Credit projects (approx. 6,220 t). In FY2024, the company plans to expand this initiative to around 40,000 ha (approx. 80,000 t).
Green Carbon also provides “Agreen,” a one-stop platform service that streamlines the entire process of credit registration, application, and sales. By simplifying procedures and documentation, the service reduces the administrative burden on credit creators.
◆Green Carbon’s social media
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
◆COSMO ENERGY HOLDINGS CO., LTD.
Representative: Shigeru Yamada, Representative Director, Group CEO
Head Office: 1-7-1 Kyobashi, Chuo-ku, Tokyo, Japan 104-8355
Established: October 1, 2015
Business Activities: Management of group companies engaged in integrated petroleum operations and related businesses, and associated activities
URL： https://www.cosmo-energy.co.jp/en/top.html
◆COSMO OIL MARKETING CO., LTD.
Representative: Naoki Takayama, President, Representative Director
Head Office: 1-7-1 Kyobashi, Chuo-ku, Tokyo, Japan 104-8323
Established: February 6, 2015
Business Activities: Petroleum product sales, car leasing, etc.
URL： https://www.cosmo-energy.co.jp/en/company/group/cosmo-com.html