Verification of Methane Emission Reduction from Paddy Fields by Introducing Alternate Wetting and Drying (AWD) in the Philippines to Commence
Green Carbon Inc. (Head Office: Chiyoda-ku, Tokyo; CEO: Jun Okita; hereinafter “Green Carbon”) and Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director & CEO: Noriaki Sakai; hereinafter “Idemitsu Kosan”) have signed an agreement to verify the commercial viability of a carbon credit generation project (hereinafter “the Project”) in the province of Isabela, the Philippines.
Under this agreement, Idemitsu Kosan will invest in the Project, and Green Carbon will conduct the verification for commercialization. The carbon credits generated by the Project will be allocated to the Philippines and Japan based on the Joint Crediting Mechanism (JCM)*¹. Of the credits allocated to Japan, Idemitsu Kosan plans to use its share primarily to offset its own emissions, while Green Carbon intends to sell its portion on the Japanese market.
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◆Project Overview
Greenhouse gas (GHG) emissions from the agricultural sector in the Philippines amount to approximately 54 million tons annually. About 25% of this total, or roughly 13 million tons, originates from paddy fields, making reduction a critical issue.
A major factor behind the high GHG emissions from paddy fields is the conventional rice cultivation method in the Philippines. Rice paddies are kept continuously flooded, which prevents oxygen from reaching the soil. Methane-producing microorganisms in the soil become more active in anaerobic (oxygen-free) environments, leading to higher methane emissions. In contrast, Japanese rice cultivation generally employs Alternate Wetting and Drying (AWD)*² (known as kandan kangai in Japanese), a practice of periodically drying the paddy fields to supply oxygen to the soil. This method helps to suppress methane emissions compared to the practices in the Philippines.
This Project aims to reduce methane emissions from paddy fields in the Philippines by introducing the AWD technique. Furthermore, in addition to reducing methane emissions, the Project will promote verification for the commercialization of carbon credit generation. This includes confirming the operational procedures for credit issuance in accordance with the JCM, with the support of relevant Philippine authorities.
The calculation of emission reductions for this Project will apply the JCM methodology “PH_AM004 Ver1.0 (Methane Emission Reduction from Rice Paddies through Water Management).” To ensure reliability and transparency, the project will be verified by a third-party entity accredited under the JCM.
Idemitsu Kosan and Green Carbon will advance the verification of this carbon credit generation business while contributing to the reduction of GHG emissions in the Philippine agricultural sector, aiming for commercialization in 2026.
*¹ Joint Crediting Mechanism (JCM): A system where Japan facilitates the diffusion of decarbonizing technologies and infrastructure in partner countries. The resulting GHG emission reductions are assessed as contributions by both Japan and the partner country, and the generated carbon credits are shared between the two nations.
*² Alternate Wetting and Drying (AWD): A technique in rice cultivation that involves alternating between flooding and drying the field every few days. Drying the paddy supplies oxygen to the soil, which suppresses the activity of methane-producing microorganisms and reduces methane emissions.
◆Green Carbon Inc.
Founded: 2019
Head Office: Hanzomon PREX North 9F, 2-3-2 Kojimachi, Chiyoda-ku, Tokyo
Representative: Jun Okita, CEO
Business Activities: Carbon credit generation and sales, agricultural-related business, environmental-related business, and other related activities, including ESG consulting
Role in Project: Project development (coordination with local stakeholders, securing participating farmers, implementation of training, monitoring with partner universities, handling of verification and application procedures)
◆Idemitsu Kosan Co.,Ltd.
Founded: 1940
Head Office: Otemachi One Tower, 1-2-1 Otemachi, Chiyoda-ku, Tokyo
Representative: Noriaki Sakai, Representative Director & CEO
Business Activities: Development, manufacture, and sale of a wide range of energy and materials in the fields of Fuel Oil, Basic Chemicals, High-Performance Materials, Power & Renewable Energy, and Resources, based on relationships of trust with various partners and customers
Role in Project: Investment in the Project