Aiming to create a model case for credit creation utilizing the potential of approximately 4 million hectares of rubber plantations, to promote decarbonization in Thailand
Green Carbon, Inc. (CEO: Jun Okita, hereafter referred to as Green Carbon), which is engaged in the creation and sale of nature-based carbon credits, is pleased to announce the signing of an MOU with the Rubber Authority of Thailand (RAOT*1), the government agency overseeing Thailand’s rubber industry. The MOU focuses on the joint development of a biochar project utilizing rubber trees after latex (the raw material for rubber) extraction. The creation of carbon credits using rubber trees from approximately 4 million hectares of rubber plantations managed by RAOT will be considered the world’s largest project of its kind. Through this initiative, we aim to contribute to decarbonization and economic development in Thailand.
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◆Background of MOU with the RAOT and Project Overview
Green Carbon is dedicated to creating nature-based carbon credits in the Asia-Pacific region, particularly in Southeast Asia. Our initiatives include a wide range of projects in Japan and overseas to generate nature-based carbon credits. This includes forest conservation, rice paddy management, mangrove reforestation, reducing methane emissions from cattle, and biochar projects.
Green Carbon has also been working with local companies, research institutes, and universities in Thailand, and has been invited to several events and workshops held by Thailand’s government Agencies. To promote biochar projects in Thailand, Green Carbon has signed an MOU with the RAOT, which oversees Thailand’s rubber industry and owns rubber plantations.
Thailand is the world’s largest producer of natural rubber, with approximately 4 million hectares of rubber plantations. The RAOT is a government agency that manages the entire rubber industry in the country, from research and development to promoting quality standards and price stabilization. Its main activities include technical support to rubber farmers, research and development, marketing assistance, and price intervention. Additionally, it supports the government policy in achieving carbon neutrality by 2050 and is developing rubber plantations in alignment to this goal.
Rubber trees are harvested for latex over the course of 25 years, after which many are simply cut down. In this project, the unused waste will be converted to biochar and used in the rubber plantations, thereby increasing the carbon sequestration in the soil, and generating carbon credits from amount of carbon sequestrated. If the project is able to generate approximately 4 million hectares of carbon credit, it will become the largest-scale project of its kind in the world.
Upon the signing of this MOU, Green Carbon will contribute to the sustainability of the rubber industry through the production of biochar using rubber trees in Thailand, as well as the creation and sale of carbon credits from the application of biochar.
◆Project Overview
In this Project, Green Carbon and the RAOT will collaborate to promote the following initiatives.
1. Carbon Credit Creation from Recycled Resources
By efficiently collecting rubber tree waste which would have been discarded, and processing them into biochar, we will create additional value. The soil carbon sequestration effect will be quantified and will be generated and sold as carbon credits.
2. Agricultural Research Using Biochar
We will apply the produced biochar to rubber plantations and scientifically assess its potential as an alternative to chemical fertilizers. In collaboration with the RAOT, we aim to establish sustainable cultivation methods in rubber farming.
3. Support in Transforming the Rubber Industry to Meet International Standards
We will provide comprehensive support to the decarbonization of the rubber industry in Thailand. Specifically, we will assist the RAOT in achieving compliance with international environmental standards, such as obtaining forest certifications and responding to EU regulations (EUDR, CBAM, etc.), thereby strengthening the sustainability of the entire industry.
Through these efforts, we will contribute to creating environmental value and the economic sustainability of Thailand’s rubber industry.
〇 Signing of the MOU（from the left：Global biopolymers representative Nopadol Suanprasert, third person from the left：Green Carbon, Inc. COO Senoo Takato, fourth person from the right：RAOT Chairman of the Board of Directors Perk Lertwangpong）
◆ Future Prospects
As the world’s largest producer and exporter of natural rubber, Thailand plays a crucial role in the global rubber industry. The collaboration with RAOT is expected to become an advanced model for the decarbonization of the entire rubber industry.
Green Carbon is actively developing various carbon credit creation projects in forest conservation and agriculture across Southeast Asia. Building on the knowledge gained from this project, we are committed to expanding biochar initiatives in major natural rubber producing countries such as Indonesia, Vietnam, and Malaysia. Through these efforts, Green Carbon aims to contribute to the decarbonization of the rubber industry in Asia and worldwide, while fostering sustainable industrial growth.
〇 Image of rubber trees
〇 Related Releases：please view the link below for releases related to Thailand.
https://green-carbon.co.jp/tag/thailand
※１：Rubber Authority of Thailand (RAOT)
The RAOT is a government agency responsible for managing and supporting Thailand’s natural rubber industry. Founded in 1961, its primary goals are to enhance the living standards of rubber farmers, stabilize natural rubber prices, and maintain competitiveness in the global market. Its main activities include offering technical support to rubber farmers, conducting research and development, providing marketing assistance, and implementing price interventions.
◆ 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
Website: https://green-carbon.co.jp/
◆ About Green Carbon, inc.
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: The Nexus Building 10F, 34-3B Ton Duc Thang, 1, Ho Chi Minh City, Vietnam
Establishment : August 2024
Businesses : Carbon credit creation and sales business, agriculture-related business