Commencement of Joint Research Project with Hitotsubashi University Entitled “Appropriate Pricing Levels for Carbon Credits in Rural Southeast Asia”

Jizoku Inc. (Head Office: Kunitachi City, Tokyo; CEO: Keiichiro Kataoka) and Hitotsubashi University (Location: Kunitachi City, Tokyo; President: Satoshi Nakano) are launching a joint research project on the appropriate price levels of carbon credits within the agricultural sector. The details of the research are as follows:

• Assessing the impact of carbon credits on mutual aid systems in rural areas of developing countries.
• Estimating an appropriate price range for carbon credits, taking the above impact into account.

Background of the Joint Research

Carbon credits are securities representing verified reductions in greenhouse gas emission, which purchasers can use to offset their own emissions. In today’s climate of accelerating environmental regulations, this initiative aims to achieve reduction targets while minimizing the burden on industry. Among these initiatives, the Joint Crediting Mechanism (JCM) functions by allowing entities within Japan to transfer funds and technology to partner countries, thereby generating carbon credits within those partner nations and allocating the reduction achievements.

Jizoku Inc. is currently supporting the generation of bilateral credits in rural areas of Southeast Asia through afforestation and improvements in agricultural practices. Although a portion of the proceeds from the sale of carbon credits is distributed to local households involved in the reduction activities, depending on the amount and method of distribution, this could potentially have a negative impact on the mutual aid systems traditionally maintained in rural areas. Furthermore, the market for bilateral credits is underdeveloped and as they are often traded through bilateral transactions, prices vary significantly from deal to deal. In this study, we will estimate an appropriate price range from the perspective of the impact on the regions where the credits are generated.

Announcement regarding the commencement of this joint research project by Hitotsubashi University:

https://arc.hias.hit-u.ac.jp/news/20260212/