~ Collaboration between forest-derived and agriculture-derived J-Credit project developers to support Japanese companies’ decarbonization ~
Green Carbon Inc. (CEO: Jun Okita, hereinafter “Green Carbon”), a company engaged in the creation and sale of nature-based carbon credits, announces that it has begun collaborating with Sumitomo Forestry Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President & CEO: Toshio Mitsuyoshi, hereinafter “Sumitomo Forestry”), operator of the Forest Value Creation Platform (hereinafter “Morikachi” (※1)) to create and sell nature-based carbon credits derived from forests and agriculture.
Sumitomo Forestry is a project developer that generates forest-derived J-Credits using its expertise in forest management and through the establishment and operation of a forest fund with assets of approximately JPY 60 billion. Green Carbon is the largest-scale domestic developer of agriculture-derived J-Credits (rice paddy mid-season drainage, biochar, livestock). Through this collaboration, the two companies aim to strengthen initiatives for creating and selling forest-derived J-Credits using Morikachi and to consider the future handling of agriculture-derived J-Credits on the platform. This collaboration will accelerate the distribution and trading of J-Credits in Japan and contribute to the decarbonization efforts of Japanese companies.
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〇To download Green Carbon Co., Ltd.’s company profile, please visit:
◆Background on Japan’s Decarbonization Trends and This Collaboration
As Japan advances its decarbonization initiatives, the emissions trading system (GX-ETS) is set to become fully operational in FY2026. On May 28, 2025, the amended GX Promotion Act was passed by the House of Representatives, mandating emissions reporting and reduction obligations for businesses emitting over 100,000 tons of CO2. The use of J-Credits is recognized as a valid method for emissions reductions under GX-ETS. In July 2025, the Ministry of Economy, Trade and Industry’s advisory panel proposed that up to 10% of an organization’s emissions allowance could be offset by purchasing carbon credits. According to U.S. research firms, the full-scale operation of GX-ETS could generate demand for approximately 54 million tons of credits by 2030, requiring around JPY 150 billion worth of J-Credits.
Demand for J-Credits has been rising, and prices in the Tokyo Stock Exchange’s carbon credit market have increased significantly. Renewable energy (RE) and energy-saving (EE) J-Credits, which were relatively inexpensive in 2023–2024, are now trading at approximately JPY 6,000/ton for RE and JPY 5,000/ton for EE as of August 2025, roughly 2–3 times last year’s prices. Compared with agriculture-derived rice paddy credits provided by Green Carbon, these price differences are diminishing, suggesting increasing demand for nature-based credits that more directly benefit the environment, including agricultural and forest credits.
Against this backdrop, Green Carbon, Japan’s largest developer of agriculture-derived J-Credits, will collaborate with Sumitomo Forestry, a forest-derived J-Credit developer, to ensure a stable supply of nature-based J-Credits.
Previously, forest and agriculture credits were often treated separately, but Green Carbon believes that forests and farmland are naturally interconnected and should not be artificially divided. Through this collaboration, we aim to promote an integrated approach—“nature-based J-Credits,” encompassing forest-derived and agriculture-derived (rice paddy, biochar, livestock) credits—and contribute to the decarbonization and carbon neutrality efforts of Japanese companies.
◆Nature-Based J-Credit Seminar
As the first initiative under this collaboration, Green Carbon and Sumitomo Forestry will hold a seminar to promote understanding of nature-based credits on Wednesday, October 22, 2025. Details of the program will be announced in follow-up communications. Please register via the participation form.
※This seminar is in Japanese.
| Date & Time | October 22, 2025 (Wed) 15:00–18:00 |
| Venue | Keidanren Kaikan 8F, 1-3-2 Otemachi, Chiyoda-ku, Tokyo |
| Speakers | ・Green Carbon: CEO Jun Okita ・Sumitomo Forestry: Hiroyuki Okada, Group Manager, Forest Technology Department, Resource & Environment Division |
| Registration | https://peatix.com/event/4564830/view |
※1: “Morikachi”: Platform that comprehensively supports the creation, verification, and trading of forest-derived J-Credits. (Reference: https://www.morikati.com/)
※2: Forest-derived J-Credits are credits certified by the Japanese government based on CO2 absorption achieved through appropriate forest management such as thinning. (Reference: https://japancredit.go.jp/case/scheme/02/)
※3: Alternate Wetting and Drying (AWD): A rice paddy irrigation method that alternates flooding and natural drying every few days, reducing water usage and contributing to water resource conservation.
◆ Green Carbon Inc.
Representative: CEO Jun Okita
Head Office: 9F PREX North, 2-3-2 Kojimachi, Chiyoda-ku, Tokyo, Japan
Established: December 12, 2019
Business Activities: Carbon credit creation and sales, agriculture-related projects, environmental projects, other related businesses, and ESG consulting
Website: https://green-carbon.co.jp/
◆ Sumitomo Forestry Co., Ltd.
Representative: President & CEO Toshio Mitsuyoshi
Head Office: 1-3-2 Otemachi, Chiyoda-ku, Tokyo (Keidanren Kaikan)
Established: February 20, 1948
Business Activities: Resource & environment business, timber and building materials, architecture and real estate, housing, lifestyle services
Website: https://sfc.jp/
◆ About Green Carbon
Guided by the vision “Harnessing the power of life to save the Earth,” Green Carbon develops and supports projects that create, register, and sell nature-based carbon credits both in Japan and abroad. The company also engages in agriculture-related business, R&D, and ESG consulting.
Its operations span Japan, Southeast Asia, Australia, and South America, generating credits from rice paddies, biochar, forest conservation, carbon farming, mangrove planting, and livestock methane reduction. In Japan, Green Carbon obtained certification for the country’s first and one of the largest rice paddy J-Credit projects (approx. 6,220 t) in FY2023, and plans to expand to approx. 40,000 ha (approx. 80,000 t) in FY2024.
Green Carbon also provides “Agreen,” a one-stop platform streamlining credit registration, application, and sales, simplifying administrative procedures and reducing the workload for credit creators.