Tohoku Bank Partners with Environmental Startup to Support Carbon Credit Creation

Tohoku bank is collaborating with environmental startup Feiger (based in Tokyo) to assist rice farmers in adopting cultivation methods that reduce greenhouse gas emissions. These methods will be certified and sold as "J-Credits" by the government.

The bank's role involves helping farmers adopt a cultivation practice known as "nakaboshi," which involves draining the paddy fields for an additional seven days. This practice has been shown to reduce methane emissions and qualifies for J-Credit certification.

Feiger will purchase the J-Credits generated by the farmers and sell them to companies aiming to offset their greenhouse gas emissions. This initiative not only provides farmers with an additional source of income but also increases the value of their rice as an environmentally friendly product.

Tohoku Bank supports farmers by assisting with the necessary documentation and verification process required for J-Credit certification. This includes collecting proof materials and submitting paperwork to Feiger. This collaboration marks the first time a regional bank in Japan has partnered with an environmental startup to support such an initiative.

The bank has already held several informational sessions for farmers in Iwate Prefecture. Through this project, Tohoku Bank aims to achieve a reduction of up to 12,000 tons of carbon dioxide equivalent in greenhouse gas emissions for the fiscal year 2024.