Daisen City, Akita Bank, and Marubeni Conclude a “Partnership Agreement on J-Credit Creation”

Feb. 19, 2024
Daisen City, Akita Prefecture
Akita Bank, Ltd.
Marubeni Corporation

Daisen City, Akita Prefecture (hereinafter, “Daisen City”), Akita Bank, Ltd. (hereinafter, “Akita Bank”), and Marubeni Corporation (hereinafter, “Marubeni”) have concluded a partnership agreement (hereinafter, “the Agreement”) on February 16, 2024, regarding the creation of J-Credits utilizing the municipally-owned forests in Daisen City.

info_240219_daisen1 Scene from the agreement ceremony (from left: Akita Bank President Shintani, Daisen City Mayor Oimatsu, and Marubeni Managing Executive Officer Teragaki)

info_240219_daisen2 Condition of registered forest land

The J-Credit System is a system in which Japan certifies as credits the amount of carbon dioxide emissions reduced through the introduction of energy-saving equipment and the use of renewable energy, as well as the amount of carbon dioxide absorbed through appropriate forest management. The aim is to circulate funds for global warming countermeasures through the free trading of credits.

This Agreement involves approximately 1,100 hectares of forest in Daisen City and is based on forest management planning. It aims to carry out proper forest management to register, certify, and sell J-Credits, with the objective of revitalizing the forest industry within Daisen City. Furthermore, the Agreement will contribute to the realization of a decarbonized society through activities promoting the sale of J-Credits to businesses, particularly in Akita Prefecture, as well as through awareness-raising campaigns. Each company will fulfill its respective roles, with the goal of registering the project in FY2024 and achieving certification for forest-based J-Credits from FY2025 onward.

Roles of Each Company

Daisen City: Provision of information about municipal forests
Implementation of forest maintenance based on a forest management plan and a J-Credit project plan
Akita Bank: Sales support for created J-Credits
Promotion of generated J-Credits
Marubeni: Registration of a J-Credit project plan
Application for J-Credit certification
Sales of generated J-credits

Currently, Japan’s forestry sector is facing difficulties in forest management due to the dispersion of small-scale forest plots and the unclear boundaries of forests. Additionally, there are many forests that have not been reforested, which could lead to the loss of multifunctional forest benefits such as biodiversity conservation and sediment disaster prevention, as well as concerns over a future decrease in timber supply. There are also issues with low timber prices, high production and distribution costs for timber, and the lack of profit return to forest owners. Through this Agreement, we aim to contribute to the revitalization of the forest industry by increasing the return of profits to forest owners.

Daisen City is one of the cities and regions in Japan that are trying to promote basic and comprehensive initiatives in line with the philosophy of the SDGs, and is particularly proud of its efforts to achieve sustainable development through the creation of new value in the three dimensions of economy, society, and environment. It was selected as an “SDGs Future City” in 2022, which represents a city or region with high potential for realizing development, and has been working on preserving the natural environment, promoting economic and industrial activities, promoting the active participation of young people, and promoting health and happiness. Daisen City aims to create a rural exchange city that is full of wellbeing and sustainable development into the future. In addition, Daisen City has jointly made a “Zero Carbon City Declaration” with the Daisen City Council in March 2022, and both aim to achieve net zero carbon dioxide emissions by 2050 based on the “Daisen City Global Warming Countermeasures Implementation Plan.”

Akita Bank has identified responding to environmental issues as one of its key issues in the Akita Bank Group Sustainability Management Policy, and is promoting initiatives to create environmental value, “Green Values.” Akita Bank will continue to support the decarbonization of local communities and customers and aim to realize sustainable local communities.

Marubeni’s efforts in this area align with the company’s long-term vision for climate change (formulated in March 2021) and its Green Strategy, one of the basic policies to enhance corporate value in the company’s Mid-Term Management Strategy “GC2024.” Marubeni aims to enhance the environmental and economic value of forest resources in Japan and abroad and to open the way to a sustainable future through the power of people and forests.

Daisen City Overview

City Hall Location: 1-1 Omagari Hanazonocho, Daisen City, Akita Prefecture
Mayor: Hiroyuki Oimatsu
Website: https://www.city.daisen.lg.jp/

Akita Bank Overview

Company Name: Akita Bank, Ltd.
Head Office: 3-2-1 Sanno, Akita City, Akita Prefecture
Establishment: 1879
Website: https://www.akita-bank.co.jp/
Main Business: In addition to deposit and lending services, Akita Bank also provides securities investment services, domestic exchange services, foreign exchange services, and public bonds at a total of 98 offices, including the main office sales department, 96 branches, and 1 sub-office, mainly in Akita prefecture. It conducts over-the-counter sales of investment trusts and insurance products. In addition, Akita Bank is expanding its efforts and services in non-financial fields, such as entering the human resources support business and establishing regional trading companies and specialized investment subsidiaries, and is actively working on business activities aimed at solving regional issues.

Marubeni Overview

Company Name: Marubeni Corporation
Head Office: 1-4-2 Otemachi, Chiyoda-ku, Tokyo
Establishment: 1949
Website: https://www.marubeni.com/en/
Main Business: Marubeni Corporation and its consolidated subsidiaries use their broad business networks, both within Japan and overseas, to conduct importing and exporting (including third country trading), as well as domestic business, encompassing a diverse range of business activities across wide-ranging fields including lifestyle, IT solutions, food, agri business, forest products, chemicals, metals & mineral resources, energy, power, 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 all of the above industries.