~ Striving for both methane reduction from rice cultivation and increased farmer income in the “Rice Granary of the Philippines” ~
Green Carbon Inc. (President & CEO: Jun Okita; hereinafter “Green Carbon”), a company engaged in the generation and sale of nature-based carbon credits, has signed a Memorandum of Understanding (MOU) with the Pampanga Provincial Agriculture Office in northern Luzon, Philippines. Through this partnership, Green Carbon aims to reduce methane emissions in rice paddies by introducing the Alternate Wetting and Drying (AWD) method (※1).
〇For inquiries regarding this press release and for further details, please contact: https://green-carbon.co.jp/en/recruit-contact/
〇To download Green Carbon Co., Ltd.’s company profile, please visit: https://green-carbon.co.jp/en/download-form/
◆Background to this partnership
Green Carbon develops nature-based carbon credits mainly across Southeast Asia and is active in a wide range of fields including forest conservation, paddy fields, mangrove afforestation, enteric methane reduction for cattle, and biochar projects. The company develops projects suited to local natural resources and achieves efficient, transparent operations by using satellite data for site selection and monitoring.
In the Philippines, the agriculture sector emits approximately 54 million tons of greenhouse gases (GHG) annually (※2), with rice cultivation alone accounting for around 13 million tons—roughly 25% of total agricultural emissions (※3). Recognizing this, Green Carbon began collaborating with local research institutions in FY2023 on methane reduction projects in rice paddies through AWD technology.
◆About Pampanga Province
Pampanga Province, located in Central Luzon, is a major rice-producing region and is known as the “Rice Granary of the Philippines.” The province benefits from abundant water resources from the Pampanga River, cultivates specific rice varieties, and is home to traditional methods such as the production of the rare duman rice (※4).
In 2024, Pampanga produced 421,587 metric tons of rice across 87,406 hectares, with an average yield of 4.82 tons per hectare (※5).
Starting this season, Green Carbon has launched AWD projects in Candaba, Lubao, and Arayat. With the support of the Pampanga Provincial Agriculture Office, the company will provide technical training for farmers and establish a system to generate and utilize carbon credits from verified emission reductions.
◆Future Outlook
Green Carbon is prioritizing AWD-based methane reduction projects in the Philippines as part of the Joint Crediting Mechanism (JCM). Based on a methodology approved in February 2025, project structuring is underway. In Japan, JCM credits are now applicable under the GX-ETS (※6) for companies exceeding their emission caps, which is expected to drive future demand.
By ensuring project profitability while contributing to decarbonization in both the Philippines and Japan, Green Carbon aims to scale AWD adoption and promote sustainable agriculture. Through its partnership with Pampanga, the company seeks to enhance farmer incomes while creating a replicable model for sustainable rice production.
※1: Alternate Wetting and Drying (AWD) – A water management practice in which paddy fields are alternately flooded and allowed to dry for several days. AWD reduces water use and methane emissions compared to continuous flooding.
※2: Source: Department of Environment and Natural Resources, Philippines (2023).
※3: Source: Journal of Food, Agriculture and Environment (2016).
※4: Source: Rice-Crops Flood Damage Assessment in the Pampanga River Basin of the Philippines (2015).
※5: Source: PhilRice Ricelytics (Philippine Rice Research Institute).
※6: GX-ETS – Japan’s growth-oriented emissions trading scheme, under which companies can trade allowances and credits to comply with government-mandated caps.
◆ 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.