Japan J-Credit Scheme — Forest Management Carbon Credits

Japan's J-Credit Scheme was established in April 2013 by the Ministry of Economy, Trade and Industry (METI), the Ministry of the Environment (MOE) and the Ministry of Agriculture, Forestry and Fisheries (MAFF), merging two earlier schemes into a unified national standard for certifying greenhouse gas emission reductions and removals.

For forestry, J-Credit certifies carbon sequestration from improved management on privately and municipally owned forests enrolled in Japan's national Forest Management Planning System. Credits are verified by accredited third-party bodies and issued to project proponents, who may use them for compliance offset obligations under Japan's GX-ETS (Green Transformation Emissions Trading Scheme) or voluntary market retirement. A 2024 revision introduced provisions to incorporate biodiversity co-benefits as a supplementary metric.

As of March 2024, 356 forestry-related projects had been registered, among the largest sector groups in the scheme. Japan's forests removed approximately 45 million tonnes of CO2 in 2023, and the government targets 72 Mt CO2/yr by 2040. Eligibility is currently limited to forests certified under the Forest Management Planning System, covering just 27% of non-national forests as of March 2024 — a scale barrier the government is working to reduce.