Utilizing 30,000 hectares of rice paddies to generate approximately 1 million tons of carbon credits over 10 years.
Green Carbon Inc. (President: Jun Okita, hereinafter referred to as “Green Carbon”), a company engaged in nature-based carbon credit generation and sales, announces the launch of a pilot demonstration for a carbon credit generation project (hereinafter referred to as “the Project”) in Nueva Vizcaya, Luzon Island, Northern Philippines. The project utilizes the JCM (Joint Crediting Mechanism ※1) methodology for “Methane Emission Reduction through Water Management in Rice Paddies.”
This project aims to reduce methane emissions by introducing AWD (Alternate Wetting and Drying ※2) in target rice paddies in Nueva Vizcaya. The pilot demonstration began in January 2025, and within the next three years, the project aims to expand to approximately 30,000 hectares of irrigated rice paddies in the province. Over the next decade, this initiative is expected to generate approximately 1 million tons of carbon credits. Additionally, Green Carbon is developing projects in seven provinces, including Bulacan (Phase1) and Batangas (Phase2), where JCM projects have already commenced. Green Carbon ultimately aims to expand the project to 1 million hectares–more than half of the total irrigated rice paddy areas in the Philippines.
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Background of the Project
Green Carbon has been actively engaged in nature-based carbon credit generation across Southeast Asia, implementing projects in diverse fields such as forest conservation, rice paddies, mangrove afforestation, methane reduction from livestock, and biochar project. By developing carbon credit initiatives that align with the unique natural resources of each region and utilizing satellite data for site selection and monitoring, the company ensures efficient and transparent project operations.
Greenhouse gas (GHG) emissions from the Philippine agricultural sector amount to approximately 54 million tons annually ※3, with rice paddies contributing around 13 million tons (approximately 25% of total agricultural emissions ※4). Given the significant impact, Green Carbon has been developing methane reduction projects in rice paddies using AWD since 2023 in collaboration with local research institutions.
Nueva Vizcaya, the implementation site for this project, is a region well-suited for rice cultivation. The province features abundant water resources, moderate elevation, and stable climatic conditions. It boasts over 64,000 hectares of rice paddies, producing approximately 2.9 million tons of rice annually. The average yield per hectare is 4.45 tons, exceeding the national average of 4.11 tons ※5.
This project will be implemented in cooperation with Nueva Vizcaya State University ※6. The project proceed with on-site methane emission measurements and analysis to validate its effectiveness, aiming to achieve both sustainable agricultural development and environmental impact reduction.
◆Comment from Nueva Vizcaya : Governor, Jose Gambito
Prior to the project’s launch, Green Carbon visited the Nueva Vizcaya government, where Governor Gambito expressed his support:
“Our collaboration with Green Carbon is a testament to our commitment to sustainable development and climate action. We are confident that this initiative will bring long-term benefits to both farmers and the environment.”
○Philippines Nueva Vizcaya Provincial Government News Article
Utilization of JCM Credits
In early February 2025, the JCM between Japan and the Philippines approved the world’s first methodology for methane emission reduction in rice paddies. Registering projects under this methodology enables the adoption of agricultural practices that reduce environmental impact while improving productivity in the Philippines and simultaneously contributed to Japan’s GHG emission reduction efforts.
In Japan, JCM credits can now be applied toward the GX-ETS※7 for offsetting corporate emissions, and demand is expected to grow further. Additionally, trading on the Tokyo Carbon Credit Market is under consideration, which is anticipated to enhance market liquidity. Given these trends, Green Carbon aims to ensure the economic feasibility of its projects while contributing to the decarbonization efforts of both Japan and the Philippines.
Future Outlook
Through this project, Green Carbon aims to accelerate the adoption of AWD in the Philippines and expand climate-friendly agricultural practices. Alongside its ongoing projects in Bulacan and Batangas, Green Carbon is implementing similar projects in seven provinces and pants to gradually expand AWD implementation to approximately 1 million hectares of rice paddies across the Philippines by 2030. Furthermore, leveraging the recent approval of the JCM methodology for rice paddies, Green Carbon aims to promote similar methodologies in partner countries, leading project development initiatives across Southeast Asia.
※1：Joint Crediting Mechanism (JCM)
JCM is a bilateral crediting system that enables Japan to transfer its advanced decarbonization technologies to partner countries, contributing to their GHG reduction efforts. The emission reductions achieved are shared between the partner country and Japan to meet their respective climate targets. The Philippines has been participating in JCM with Japan since January 2017.
※2：Alternate Wetting and Drying (AWD)
AWD is an irrigation technique where water is periodically applied and allowed to dry naturally over several days. Compared to continuous flooding, AWD reduces water consumption and contributes to water resource conservation.
※3：Annual GHG Emissions from the Philippine Agricultural Sector (54 million tons)
Reference: Philippine Department of Environment and Natural Resources (2023)
※4：GHG Emissions from Rice Paddies in the Philippines (13 million tons)
Reference：Journal of Food, Agriculture and Environment（2016）
※５：Rice Paddies and Production in Nueva Vizcaya
Reference：Philrice Ricelytics (2024)
https://www.philrice.gov.ph/ricelytics/productions/province/50
※６：Nueva Vizcaya State University (NVSU)
Established in 1916, NVSU is a public university in the Philippines, specializing in research and education on sustainable agricultural technologies. Its main campus is in Bayombong, Nueva Vizcaya, offering programs in tropical crop cultivation and livestock management.
※７：GX-ETS System
Japan’s first nationwide emissions trading system. It requires companies to reduce their greenhouse gas emissions, and if they fail to meet their targets, they are required to purchase emission allowances from other companies. As of fiscal year 2024, 747 companies are participating, and the system is expected to be fully operational starting in fiscal year 2026.
◆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 the 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 main 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.
◆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, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Establishment ：August, 2024
Businesses ：Carbon credit creation and sales businesses, agriculture-related business
◆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/