Key Takeaways
- Green Carbon and Shell have formed a collaboration to reduce methane emissions from rice paddies in the Philippines.
- The project will be implemented under Japan’s Joint Crediting Mechanism (JCM).
- Alternate Wetting and Drying (AWD) technology will be applied across 50,000 hectares on Mindoro Island.
- The initiative targets methane emission reductions of approximately 30% from rice cultivation.
- The project aims to generate JCM carbon credits and establish a pathway for commercialization.
Green Carbon and Shell Establish JCM-Based Agricultural Project
Green Carbon Inc., a Japan-based company specializing in the generation and sale of nature-based carbon credits, has formed a collaborative framework with Shell Eastern Trading (Pte) Ltd. to support a methane reduction project in rice paddies on Mindoro Island in the Philippines. The initiative will be implemented under Japan’s Joint Crediting Mechanism (JCM) and focuses on delivering measurable greenhouse gas emission reductions from agricultural activities.
The collaboration aligns with the expansion of the JCM beyond the energy sector into agriculture, an area identified as having significant potential for emissions reduction and carbon credit generation.
Green Carbon & Shell: Addressing Methane Emissions from Rice Cultivation
Agriculture accounts for an estimated 25% of greenhouse gas emissions in the Philippines, with rice cultivation identified as a major source of methane emissions. Methane from flooded rice paddies is estimated to contribute more than half of agricultural emissions in the country.
To address this, the project will introduce Alternate Wetting and Drying (AWD) technology, a water management approach that reduces methane emissions by alternating between flooded and dry conditions during rice cultivation. The methodology used, “Reducing Methane Emissions through Water Management in Paddy Fields” (PH_AM004), was approved by the Philippines–Japan Joint Committee on the JCM on February 3, 2025, following development by an expert committee in collaboration with the Asian Development Bank and Japan’s Ministry of Agriculture, Forestry and Fisheries.
According to project estimates, AWD technology can reduce methane emissions from rice paddies by approximately 30%.
Project Scope and Roles
The collaboration between Green Carbon and Shell will focus on deploying AWD technology across 50,000 hectares of rice paddies on Mindoro Island. Green Carbon will lead project design and coordination with local farmers, while Shell will provide investment support to enable early-stage development and scaling.
The partners aim to secure the issuance of JCM credits and develop a roadmap toward broader commercialization of methane reduction practices in rice farming.
Organizational Contributions and Market Integration
Green Carbon will serve as the technical lead, applying the latest JCM-approved methodologies and linking the resulting credits to Japan’s GX-ETS framework, which recognizes JCM credits for corporate offsetting. Shell’s role includes supporting market access for JCM-based credits and providing financial backing during project development.
The companies stated that the collaboration reflects a shared focus on decarbonizing agriculture while supporting rural development and establishing scalable models for emissions reduction in rice-producing regions.
