Japanese agricultural decarbonisation firm Faeger said it will partner with the town of Hirono in Fukushima Prefecture to generate carbon credits from rice cultivation and develop a premium rice brand produced using climate-friendly farming methods.
The agreement aims to cut agricultural greenhouse gas emissions while boosting crop quality and farmers’ incomes, the Tokyo-based company said in a statement last week.
Under the partnership, farmers will extend the mid-season drainage period of paddy fields – a technique known to reduce methane emissions – and adopt other measures such as biochar use to generate government-certified J-Credits. Revenue from the credits will be reinvested in heat-resilience measures and improvements to the cultivation environment, the company said.
Japan’s J-Credit scheme is a government-backed carbon offset programme that certifies emissions reductions or removals achieved through projects such as renewable energy, energy efficiency and low-emission agriculture. Companies can purchase these credits to offset their own emissions or meet climate targets, creating a potential new income stream for farmers and local governments.
The initiative also seeks to brand locally produced Koshihikari rice as “Hirono rice,” marketed as environmentally friendly, heat-resilient and high quality, as Japan’s rice growers face mounting damage from increasingly frequent extreme heat.
Hirono has pledged to become a “zero carbon city” by 2050 but has struggled with declining rice quality due to high temperatures in recent years. The town officials see agricultural decarbonisation not only as an environmental measure but also as a new source of income for rural communities.
Japan has set a national target of achieving carbon neutrality by 2050 and cutting greenhouse gas emissions by 46 per cent from 2013 levels by 2030. The government has increasingly promoted carbon markets and sector-specific initiatives, including in agriculture, as part of its strategy to meet those goals while maintaining economic growth.
The project will roll out in stages as a pilot model, with results shared across Fukushima’s coastal Hamadori region and potentially nationwide, Faeger said.
Participating farmer Toshinori Suzuki said he had not observed any negative impact on yields or quality from the extended drainage period.
“If it helps the environment, I would like to continue,” he said, as cited by the press release, adding that this year’s harvest ranked first in taste within the town and all rice produced met top-grade standards.
Beyond carbon credit generation, the partnership includes farmer education programmes on the credit system, support for agricultural digitalisation such as water-level and temperature sensors, and measures to mitigate heat stress on crops.
The initiative builds on Japan’s broader post-disaster revitalisation efforts in Fukushima.
Since 2023, the Reconstruction Agency has run a “Hamadori Revitalisation Living Lab” programme that uses private-sector expertise to address regional challenges.
Faeger was selected for the programme in 2024 and has been testing simplified J-Credit generation models in coastal towns including Hirono and Namie.
Faeger said it has supported J-Credit creation from rice cultivation in 36 of Japan’s 47 prefectures and generated roughly 136,000 tonnes of carbon-dioxide equivalent credits in 2024, making it one of the country’s leading players in agriculture-based carbon markets.
Last month, the company also announced a similar project with Ogata village in Akita Prefecture to promote resource-circulating agriculture and next-generation farming using data and satellite technologies.
