We are working to generate and promote the circulation of "forest-derived J-Credit＊1" to reduce CO₂ emissions and solve regional issues related to forests

Japan's vast forests have the potential to reduce CO₂ emissions by up to 5 million tons annually＊2. However, labor shortages and the rise of neglected forests are increasing the number of aging forests, which in turn diminishes CO₂ absorption. The decreasing functionality and value of forests nationwide are leading to reduced interest in forestry, causing a decline in the industry and further exacerbating the degradation of forest functions and values.

NRI aims to break the vicious cycle and advance a decarbonized society by promoting "Forest-Derived J-Credit." This system involves the government certifying CO₂ absorption increases achieved through proper forest management and wood utilization as credits. These credits can then be sold to CO₂-emitting companies, with the revenue supporting various local projects. NRI's platform simplifies procedures and ensures reliable CO₂ absorption records into the blockchain. We are collaborating with the government to increase the creation of forest-derived J-Credit, starting with two forests＊3 in Tsuruoka City, Yamagata Prefecture.

NRI is committed to addressing social issues by co-creating value with public and private stakeholders.

＊1 The "J-Credit Scheme" is a government-certified program that recognizes CO₂ emission reductions or absorptions from initiatives like energy - efficient equipment, renewable energy use, and forest management as credits. Credits generated from forest management are known as "Forest-Derived J-Credit.

＊2 Estimation by NRI

＊3 Atsumi Town and Sanze District in Tsuruoka City, Yamagata Prefecture are expected to be certified by the end of fi scal 2024.

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