Accelerating Carbon Credit Development Domestically and Internationally through bilateral partnership
Green Carbon, Inc. (CEO: Jun Okita, hereinafter referred to as Green Carbon) is pleased to announce that it has launched a business partnership with Fuyo General Lease, Co,. Ltd . (President and CEO: Hiroaki Oda, hereinafter referred to as Fuyo Lease Group) to jointly create nature-based carbon credits※1 in the forestry and agricultural sectors.
Background of collaboration with Fuyo General Lease, Co,. Ltd. and overview of the project
In recent years, the momentum toward decarbonization has been growing as the world seeks solutions to the global challenge of climate change. Over 120 countries and regions, including Japan, have declared carbon neutrality by 2050 and are working to reduce greenhouse gas emissions. Among the effective measures to achieve carbon neutrality, carbon offsetting with the use of carbon credits has been gaining attention.
Green Carbon, with the vision to “Save the Earth through the Power of Life,” focuses on the creation and sales support of carbon credits primarily in Japan and Southeast Asia. Domestically, Green Carbon is involved in projects such as reducing methane emissions by extending the mid-term drainage period in rice paddies, sustainable forest management, and biochar initiatives. Among these, rice paddy-derived credits have obtained Japan’s first and largest※2 certification of rice paddy J-credits in 2023. In 2024, certification for approximately 100,000 tons of J-credits is expected. In Southeast Asia, over 15 government agencies, states, and municipalities are collaborating on projects to generate credits through methane gas reduction via Alternate Wetting and Drying (AWD)※3 in rice paddies, as well as reforestation, mangrove restoration, and biochar projects. These efforts go beyond J-Credits and include a wide range of credits such as voluntary credits and JCM (Joint Crediting Mechanism).
Fuyo Lease Group aims towards sustainable growth as a corporate group by simultaneously achieving the resolution of social issues and economic value through the practice of CSV (Creating Shared Value) in its medium-term management plan, “Fuyo Shared Value 2026,” which started in 2022. Additionally, as part of its efforts to explore new areas, Fuyo Lease Group is focusing on the identification of emerging markets and the potential challenges of customers. Through co-creation with partners that share value in new business areas, the group will contribute to the realization of a prosperous and sustainable society.
Fuyo Lease Group and Green Carbon entered into this agreement following the joint pilot project launched in September 2024 in the province of Bulacan, Philippines (located in central Luzon, covering the southeastern part of the Central Luzon Plain), aimed at generating carbon credits from rice paddies. Under this partnership, by combining Green Carbon’s expertise in developing nature-based carbon credit creation projects with Fuyo Lease Group’s extensive customer base, both companies aim to extend the carbon credit generation business and advance efforts toward realizing a decarbonized society.
The joint pilot project is a pioneering example of a Philippines bilateral credit mechanism (JCM) project, making it a globally leading case. Moving forward, the goal is to extend the JCM framework and its track record, aiming to scale up projects utilizing the JCM methodology across Southeast Asia, starting with the Philippines.
〇 above: Location of Bulacan State on Google Maps
※1: Nature-Based Carbon Credits
Carbon credits refer to a system where companies can trade the amount of greenhouse gas emissions reduced through environmental activities. Companies can trade reductions or absorption of greenhouse gasses in the form of credits (emission rights) with other companies. Among these, carbon credits created through primary industries are considered nature-based carbon credits, which are mainly generated by Green Carbon.
※2: Japan’s First and Largest Rice Paddy Credit Certification
Based on the Ministry of Agriculture, Forestry and Fisheries’ announcement on January 26, 2024.
(https://www.maff.go.jp/j/press/kanbo/b_kankyo/240126.html)
※3: AWD (Alternate Wetting & Drying)
A water management technique for rice paddies that alternates between filling the field with water and drying it out every few days. This technique is effective in reducing methane emissions, as methane-producing bacteria are activated in low-oxygen conditions. It is gaining attention as a method that simultaneously reduces irrigation water usage and greenhouse gas emissions.
◆ 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/
◆ Introduction of Green Carbon
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 workload for credit creators.
◆ 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, 1, Ho Chi Minh City, Vietnam
Establishment : August 24
Businesses : Carbon credit creation and sales business. agriculture-related business
◆ Fuyo General Lease, Co., Ltd.
Representative : Hiroaki Oda, President & CEO
Location : Sumitomo Fudosan Kojimachi Garden Tower, 5-1-1 Kojimachi, Chiyoda-ku, Tokyo
Establishment : May 1, 1969
Business : the provision of lease and finance services for corporations, as well as offering solutions in the fields of real estate, aircraft, energy and environment, BPO/ICT, healthcare, mobility and logistics, circular economy, and other business sectors.
URL : https://www.fgl.co.jp/
◆ Introduction of Fuyo Lease Group
Since the founding of Fuyo General Lease in 1969, Fuyo Lease Group has continuously expanded its business through growth strategies centered on solution proposals, M&A, business diversification, and value creation. As external environments rapidly change, the group will leverage the problem-solving capabilities it has cultivated to achieve both financial results and non-financial value creation through solving social issues, based on the concept of CSV (Creating Shared Value). Moving forward, the group aims to maintain sustainable growth.