Marubeni Corporation (hereinafter, “Marubeni”), Nakagawa Corporation (hereinafter, “Nakagawa”), and DeepForest Technologies Co., Ltd. (hereinafter, “DeepForest”), have entered into a collaborative agreement to actively engage in the creation of J-Credit in the forests managed by Nakagawa in Tanabe City, Wakayama Prefecture, Japan, as part of their commitment to achieving the Sustainable Development Goals (SDGs) and carbon neutrality by 2050 (hereinafter, the “Project”).

Despite forests covering 67% of Japan’s landand approximately half of the country’s artificial forest reaching the age for deforestation, the reforestation rate* remains at only 30% due to low timber prices and the high cost of afforestation. The Project aims to improve the reforestation rate by simplifying the surveying of reforested areas in Tanabe City through the use of drones, and the data collected will be used to create and sell J-Credits, thereby establishing a revenue-generating model for forest owners.

Marubeni, in its mid-term management strategy “GC2024,” has positioned its green strategy as a fundamental policy for enhancing corporate value and is working on environmental afforestation Projects in the Philippines, Angola, and Malaysia, as well as domestically in Noshiro City, Akita Prefecture, to increase both the environmental and economic value of forest resources. In this Project, Marubeni will support the creation and certification of J-Credits derived from domestic forests and handle the sales of the created J-Credits.

Nakagawa, a venture company based on the concept of “forestry without cutting trees,” focuses on reforestation by planting trees in harvested areas. Based in Tanabe City, Wakayama Prefecture, Nakagawa manages its own reforested forests and will handle dialogue with local stakeholders and the development and implementation of forest management plans within the Project. Furthermore, Nakagawa is advancing efforts to regenerate forests comprised of Ubamegashi (Quercus phillyraeoides), a species of oak used for the production of Kishu Binchotan charcoal, a specialty of Wakayama Prefecture, by planting seedlings grown from acorns by local children. A portion of the revenue generated from the Project will be allocated to support these efforts.

DeepForest, a startup originating from Kyoto University, is advancing forest digital transformation (DX) by providing an analysis system capable of measuring individual trees using drones and AI. There have been no instances of J-Credits being registered using data surveyed by drones equipped with lasers, and this Project aims to be the first in Japan to create J-Credit by acquiring and analyzing the necessary forestry data.

Through the Project, the three companies will collaborate to address current challenges in Japanese forestry, such as improving the reforestation rate by returning profits to forest owners and promoting the use of forest data. In the future, they also aim to preserve biodiversity in the region and obtain certification as a nature coexistence site recommended by the Ministry of the Environment. By creating a system that utilizes the newly added environmental value and technology of forests in collaboration with the local community, they seek to explore new ways of forestation in Japan.

* The ratio of the area of artificial forests planted to the area of artificial forests that have been harvested.

Overview of Companies:
Marubeni
Company name:	Marubeni Corporation
Head office:	4-2, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8088, Japan
Established:	1949
Representative:	Masumi Kakinoki
Main business:	Import and export (including third country trading), as well as domestic business, encompassing a diverse range of business activities across wide-ranging fields, including lifestyle, ICT Solutions, forest products, food, agri business, chemicals, energy, metals & mineral resources, power business, infrastructure project, aerospace & ship, finance & leasing & real estate business, construction, industrial machinery & mobility, next generation business development and next generation corporate development. Additionally, the Marubeni Group offers a variety of services, makes internal and external investments, and is involved in resource development throughout the above industries.
Website:	https://www.marubeni.com/en/
Nakagawa
Company name:	Nakagawa Corporation
Head office:	2-32-7 Bunri, Tanabe City, Wakayama 646-0023, Japan
Established:	2016
Representative:	Takashi Tanaka
Main business:	Forest cultivation, forest-related education, forest-related consulting
Website:	https://nakagawa-forestry.com/
DeepForest
Company name:	DeepForest Technologies Co., Ltd.
Head office:	INTERNATIONAL SCIENCE INNOVATION BUILDING, KYOTO UNIVERSITY, 36-1 Yoshida-honmachi, Sakyo-ku, Kyoto-shi. Kyoto
Established:	2022
Representative:	Masanori Onishi
Main business:	Forest measurement work, J-Credit related work
Website:	https://deepforest-tech.co.jp/en/