SBI Sumishin Net Bank signs capital and business alliance agreement with Green Carbon
SBI Sumishin Net Bank has entered into a capital and business alliance agreement with Green Carbon to realize the joint creation of carbon credits in the forestry and agriculture sectors.
Background and purpose of the capital and business alliance
In Japan, responding to global warming is an urgent issue, and in order to achieve the “carbon neutral by 2050” goal set by the Japanese government, in addition to reducing greenhouse gas emissions such as CO2, measures such as preserving and strengthening CO2 absorption resources such as forests are necessary.
In order to accelerate efforts toward realizing a carbon-neutral society, SBI Sumishin Net Bank established THEMIX Green in October 2023, and is working to support the creation of J-Credits in forests and solve forestry issues. The J-Credit Scheme is a system in which the government certifies the amount of CO2 and other emissions reduced through the introduction of energy-saving equipment and the use of renewable energy, as well as the amount of CO2 and other emissions absorbed through appropriate forest management, as “credits.”
Green Carbon is developing a carbon credit creation and sales support business mainly in Japan and Southeast Asia. In Japan, it is implementing a methane gas reduction project by extending the mid-drying period of rice paddies, as well as a forest management and biochar project, and in January 2024, the rice paddy project obtained the first and largest J-Credit certification in Japan.
In addition, as of September 2024, the rice cultivation consortium has a registered area of over 40,000 ha, with more than 900 companies and agricultural corporations participating, and has built a unique farmer network across the country.
In Southeast Asia, the company is carrying out projects such as credit creation by reducing methane gas through the implementation of intermittent irrigation (AWD) in rice paddies, as well as afforestation, mangrove, and biochar projects, and is engaged in a wide range of business activities, from credit creation using voluntary credits and the Joint Crediting Mechanism (JCM) methodologies to the development of new methodologies. The JCM is a system in which Japan cooperates with developing countries to reduce greenhouse gas emissions, and the benefits of the reductions are shared between the two countries.
By entering into a capital and business alliance with Green Carbon, SBI Sumishin Net Bank will accelerate its business development related to the creation of nature-based carbon credits in the forestry and agriculture sectors and support for solving regional issues through its subsidiary THEMIX Green.
Future developments
Through this capital and business alliance, SBI Sumishin Net Bank, THEMIX Green, and Green Carbon will promote the creation of carbon credits through the following initiatives. In addition to using the domestic J-Credit Scheme, the partners will also expand their business by considering the use of voluntary credits and the Joint Crediting Mechanism (JCM) overseas.
- Methane gas reduction project in Japan by extending mid-drying period
- Mangrove planting projects in Southeast Asia
- Methane Gas Reduction Project through Intermittent Irrigation in Southeast Asia
- Domestic and international projects to store carbon in soil by applying biochar to farmland
- Forest conservation projects both at home and abroad
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