— Aiming towards Puro Earth certification of 110,000 tons of CDR credits per plant over 15 years —
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 its partnership with The Varhad Group (Founder: Prasad Dahapute, hereinafter referred to as “Varhad”), an Indian biochar plant manufacturer, and Nature Base Consulting, Inc. (CEO: Mai Tatsumi, hereinafter referred to as “NBC”) to launch a project in India. This initiative, the first of its kind by a Japanese company, aims to create the world’s largest CDR*¹ credit project. The project seeks certification from Puro Earth*², an international certification body and targets the generation of approximately 110,000 tons of CDR credits (biochar-derived carbon credits) per plant over 15 years, with the goal of completion by 2040.
◆ Background of Collaboration Between the Three Companies
Green Carbon strives towards the creation of nature-based carbon credits, primarily in Southeast Asia, with diverse projects such as forest conservation, rice fields, mangrove afforestation, cattle burp reduction, and biochar. In particular, biochar projects are being implemented in various countries. In Thailand, Green Carbon is collaborating with the government agency, the Rubber Authority of Thailand (RAOT), to develop a biochar project using rubber trees, covering an area of approximately 4 million hectares. Additionally, in the Philippines, Green Carbon is working with the Alcom Carbon Markets Philippines, Inc. (Alcom), a company engaging in biochar plant manufacturing and business development, to create carbon credits using biochar. Building on the above background, Green Carbon is expanding its biochar projects to India. Together with Varhad, a local biochar plant manufacturer in India, and NBC, a domestic partner, Green Carbon plans to launch this new project.
Green Carbon’s role will include overall project management and the creation of carbon credits. NBC will be responsible for securing project funding on behalf of Green Carbon, while Varhad will provide and operate biochar plants in India. In the first year, the goal is to introduce four biochar plants. Carbon credits generated through this project will be sold not only to companies actively engaged in decarbonization but also to local businesses. Additionally, biochar and bio-oil (wood vinegar) produced will be sold, contributing to the development of a circular economy in India.
◆ About Market Evaluation of CDR Credits
The market evaluation of the CDR credits created through this project is high, with global companies such as Microsoft, Amazon, BCG, and Shopify actively purchasing large quantities. For example, Microsoft signed a contract in July 2024 to purchase approximately 500,000 tons of CDR credits from 1PointFive, a subsidiary of the energy giant Occidental (Oxy), making it the largest contract of its kind.
According to MSCI’s research, CDR credits are traded at a higher price than Reduction credits (absorption and reduction credits), with a price difference of approximately 45 times. In fact, CDR credits traded on platforms like Puro Earth are priced at around 150 USD/t (approximately 22,000 JPY) even at the lowest, highlighting the high market value of CDR credits. Based on this market situation, Green Carbon has decided to move forward with the development of a biochar project in India.
◆ About Future Developments
1. Contribution to Decarbonization
According to a survey by the Ministry of the Environment, India’s greenhouse gas (GHG) emissions amount to approximately 3.2 billion tons*³ per year, making it the third-largest emitter after China and the United States. Of this, emissions from the agriculture sector account for about 736 million tons*⁴ (approximately 23% of the total). This highlights that reducing GHG emissions in the agricultural sector is one of the priority issues in India’s decarbonization strategy.
This project aims to contribute to India’s decarbonization efforts by generating approximately 110,000 tons of carbon credits per biochar plant over a project period of about 15 years.
2.2 Creation of Credits Utilizing the Joint Crediting Mechanism (JCM)
In this project, carbon credit certification will primarily be conducted through voluntary credits (e.g. Puro Earth). However, in the future, the aim is to register projects and create credits using the Joint Credit Mechanism (JCM).
In Japan, JCM credits have been approved for use under the GX-ETS system to offset excess emissions by companies, and demand for these credits is expected to rise further. Additionally, the introduction of JCM credit trading on the Tokyo Stock Exchange is being considered, which is expected to improve market liquidity. Given this background, JCM projects are currently receiving significant attention.
Although India is not yet one of Japan’s JCM partner countries, this project aims to pave the way for approval as a partner country, establish methodologies for creating JCM credits in the agricultural sector, and ultimately contribute to the decarbonization efforts of both India and Japan while ensuring the project’s economic viability.
◆ Introducing the Biochar Plant Specialist Team in India
※1：CDR
Carbon Dioxide Removal (CDR), a tool for reducing greenhouse gas (GHG) emissions, refers to human activities that remove CO2 from the atmosphere and permanently store it in underground reservoirs, marine environments, or concrete products.
※2：Puro Earth
Puro Earth is the world’s first B2B market focused on carbon removal, serving as an international certification body for carbon credits by issuing verified CO2 Removal Certificates (CORCs), which are based on long-term removal of carbon from the atmosphere. The organization connects suppliers of carbon-negative technologies with companies seeking to reduce or offset their CO2 emissions. Additionally, the company is a pioneer in developing carbon removal methods such as biochar, carbonized building materials, and underground carbon storage.
※3：Approximately 3.2 billion tons per year
https://www.env.go.jp/content/000230409.pdf
Reference: Ministry of the Environment
※4：Approximately 736 million tons of greenhouse gases from the agricultural sector
https://www.env.go.jp/content/000230409.pdf
Reference: Ministry of the Environment
※5：Joint Crediting Mechanism (JCM）
JCM is a system through which Japan contributes to the reduction of greenhouse gas emissions in partner countries by promoting the dissemination of Japan’s advanced decarbonization technologies. The emission reductions achieved are then utilized to help both countries meet their reduction targets. This is a bilateral system established between Japan and its partner countries, led by the Japanese government. As of February 2024, 29 countries are participating as partner countries in this system.
◆ 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/
◆ Business Introduction of Green Carbon
Green Carbon operates with the vision of “Saving the Earth with the Power of Life”, by providing comprehensive support for the creation, registration, and sales of carbon credits in domestic and international markets. We are also expanding our business operations in wider industries including agriculture, research & development, and ESG consulting.
Our operations are primarily based in Japan and Southeast Asia, while currently expanding business in Australia and South America. We create naturally derived carbon credits from sources including water paddies, biochar, forest conservation, carbon farming, mangrove plantation, and methane from cattle eructation. Our focus is on generating carbon credits through methane gas reduction in rice paddies, where we have obtained the first and largest certification for J-Credits in Japan (approximately 6,220 tons), and plan to expand to around 40,000 hectares (approximately 100,000 tons) 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.
◆ Social Media for Green Carbon
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
◆ Business Introduction of the Varhad Group
Varhad’s mission is to restore Soil Health, produce chemical-free nutritious food, and empower farmers. Varhad works through its farmer base to enable regenerative agriculture which restores Soil Health and produces chemical-free nutritional food. It enables transition to regenerative agriculture by producing regenerative agricultural inputs like biochar and wood vinegar through Pyrolysis. Varhad’s two innovations are its low cost robust Pyrolyser BWE 480 and its proprietary Biochar based biofertilizer (called Biochaar++). These innovations are the core of Varhad’s mission. Other than soil health, Varhad uses Biochaar++ and Wood Vinegar for improving the soil’s water retention and plant resilience against pest & disease. This eliminates the need for harmful chemical fertilizers and pesticides. With a strong network of 550,000 farmers and 165 farmer cooperatives, Varhad source agricultural biomass for biochar and wood vinegar production, in exchange of Biochaar++. This prevents stubble burning, enhances soil fertility, and removes carbon emissions.
◆ Business Introduction the Nature Base Consulting, Inc.
ESG stands for Environment, Social, and Governance, and it is gaining significant attention in modern corporate management and investment markets. In other words, ESG management can lead to better fundraising opportunities and improved corporate image. Moreover, it is an important business strategy that will also affect future employment practices. However, many companies may not fully understand what ESG is or whether they are implementing it correctly. It is crucial to analyze the company from a third-party perspective, as stakeholders are increasingly concerned. NBC supports companies from an independent position, ensuring their growth.
URL：https://nb-c.jp/