Japanese Firms to Develop Verra IFM Carbon Credits in Hamamatsu City

Eight Japanese companies, including Sojitz Corporation, SBI Sumishin Net Bank, and Salesforce Japan, have announced a partnership with the country’s Hamamatsu City to develop voluntary carbon credits under Verra’s improved forest management (IFM) methodology, the firms said on Aug. 30.

The alliance, which also includes Temix Green, Maply, Fuyo General Lease, Green Carbon, and Sustainacraft, will begin verification for the issuance of credits under Verra’s Verified Carbon Standard (VCS) program in September, using the IFM methodology for artificial cedar and cypress forests in the city.

This approach involves sustainable practices for logging and the elongation of logging cycles to enhance carbon sequestration. The participating companies bring experience in forestry, forestry administration, and digital platforms for creating and issuing forest-derived carbon credits, with networks to potential buyer companies internationally, the firms said.

The coastal Hamamatsu City in Shizuoka Prefecture has a 100,000-hectare forest area, one of the largest in Japan.

While Japan’s carbon trading has traditionally centered around government-certified J-Credits, the partners highlight a rising demand from global corporations for credits that comply with international standards, such as Verra’s Verified Carbon Standard (VCS).

There are currently no Verified Carbon Standard (VCS) projects registered in Japan, according to data from the Verra registry. However, three VCS projects are under validation or development in the country, including one by Hitachi Systems which employs the IFM methodology as well.

Forestry carbon credits generally fetch the highest premium within the domestic J-Credit market, last listed at 5,000 yen per metric ton ($34.30/mt) on Aug. 30, according to data from the Tokyo Stock Exchange. This is compared to J-Credits in other categories, such as renewable electricity (4,580 yen/mt) and energy conservation (1,600 yen/mt).

($1 = 145.9 Japanese yen)

— Reporting by Melissa Goh, mgoh@opisnet.com; Editing by Chuan Ong,
cong@opisnet.com

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