iforest to Create and Issue Japanese Voluntary Credits (IFOREST CREDITS) for Forests in Hinohara Village, Tokyo

Biological survey at the project site (Hinohara Village, Tokyo)

iForest Co., Ltd. (Headquarters: Chuo-ku, Tokyo; Representative Director & CEO: Takaaki Maruyama; hereinafter "iforest") is pleased to announce that it has created and issued the Japanese voluntary credit "IFOREST CREDITS" ※1, based on the NCCC Carbon Standard, which integrates high-precision MRV using UAV LiDAR and satellite data with biodiversity assessment, for approximately 17ha of private forest in Hinohara Village, Tokyo. This marks the first time for a Japanese forest.

※1 IFOREST CREDITS are a new type of Japanese voluntary credit derived from forests. They aim to simultaneously achieve decarbonization and nature positivity by scientifically visualizing and certifying not only the CO2 absorption of forests but also the value of natural capital such as biodiversity and water resource conservation, as well as contributions to the region, enabling companies and society to invest in nature restoration.

This project, launched with the support of Tokyo Metropolitan Government's "FY2024 Project to Promote the Creation of Absorption/Removal Carbon Credits," was implemented in collaboration with iforest, Yamaha Motor Co., Ltd., Bio-me Inc., Tokyo Tatemono Co., Ltd., the Natural Capital Credit Consortium (NCCC), and the Urban Research Center of Kyushu University, National University Corporation, among others.

In this initiative, high-precision MRV (Monitoring, Reporting, and Verification) utilizing UAV LiDAR measurement and satellite data was integrated with biodiversity and natural capital assessment. This scientifically and quantitatively visualized the value of biodiversity and natural capital in addition to the forest's CO2 absorption capacity. Furthermore, it represents the first implementation model for Japanese forest-derived voluntary credits, achieving everything from methodology development to certification and credit issuance consistently.

Overview of Certified IFOREST CREDITS

The project certified this time is a forest regeneration and conservation project implemented in a 17.31ha forest located in Hinohara Village, Nishitama District, Tokyo. Specifically, it aims to improve the forest's carbon fixation and ecosystem functions through appropriate thinning of unmanaged artificial forests, conservation of natural forests, and guidance towards mixed coniferous-deciduous forests that consider biodiversity.

The credit accounting period is set for 20 years from 2025 to 2045, and the project implementation period is from 2025 to 2035, reflecting a design that looks at medium- to long-term forest regeneration and conservation. The project overview is as follows:

・Project Name: Hinohara Village, Tokyo Natural Forest・Artificial Forest Restoration Project

・Project Implementer: iforest Co., Ltd.

・Project ID: 0002

・Location: Hinohara Village, Nishitama District, Tokyo

・Target Area: 17.31ha

・Credit Accounting Period: 2025-2045

・Project Period: 2025-2035

・Applicable Methodology: NCCC-MD0002 (Afforestation, Reforestation, Revegetation)

・Certified Credit Volume (Allocated): 258t-CO2e

・Buffer Pool Allocation: 44t-CO2e

・Total Certified Volume: 302t-CO2e

Notification of Decision on Carbon Credit Certification Volume Issued by NCCC

High-Precision and Practical MRV Achieved with UAV LiDAR x Satellite Data

A major feature of this project is the establishment of an MRV method that accurately and efficiently grasps forest biomass and CO2 absorption by combining UAV LiDAR with multiple satellite data. Compared to satellite data alone, an approximately 61% improvement in accuracy was achieved, and compared to conventional methods, a cost reduction of approximately 30-60% was demonstrated. These results significantly enhance the feasibility of adoption in the field of forest credit creation.

Technically, the forest's condition is evaluated from multiple perspectives using data such as NPP derived from MODIS/Terra, NDVI derived from Sentinel-2, and forest structure data derived from LiDAR. As an example of analysis, indicators such as an average tree height of 24.9m, average DBH of 22cm, 22,015 trees, and a density of 1,271.703 trees/ha were confirmed in the target area, establishing a foundation for quantitatively capturing the forest's carbon absorption capacity and structural characteristics.

LiDAR measurement by Yamaha Motor's industrial UAV

Visualizing Not Only Carbon Value but Also Biodiversity and Natural Capital

This project has also established a framework for evaluating and visualizing improvements in biodiversity and natural capital, going beyond the calculation of carbon absorption. The NCCC's Natural Capital Outcome Credit Methodology employs multiple indicators such as Forest Structure Score (SCU), Satellite Index, and Species Observation Score (SOU) to quantitatively assess ecosystem improvement by calculating the difference from a baseline period and the difference-in-differences (DID) compared to a control area.

This allows companies and local governments to view forest-derived credits not just as CO2 absorption but as comprehensive environmental value, including the restoration of biodiversity and the enhancement of natural capital. As a new model that simultaneously promotes climate change countermeasures and nature positivity, it is believed to have shown a new direction that complements and enhances existing government-led systems such as J-Credit forest projects and Nature Co-creation Sites, while being compatible with them.

Yellow Bunting (NT - Near Threatened) confirmed at the project site

Ensuring Institutional Reliability through Methodology Development and Third-Party Verification

The calculation of carbon absorption and removal in this project is based on "NCCC Afforestation, Reforestation, Revegetation (NCCC-MD0002)." This methodology, proposed by iforest, aims to reduce measurement costs and improve spatial representativeness by incorporating remote sensing technologies such as UAV LiDAR and satellite imagery, while considering both existing domestic and international standards.

Furthermore, the validity confirmation report from the third-party verification body, the Institute for Measurement and Sustainability Science, determined that it is appropriate as a target for credit certification based on the NCCC Carbon Standard, and the methodology's suitability, monitoring plan, QA/QC, contractual relationships, and buffer pool settings were appropriately confirmed.

NCCC Afforestation, Reforestation, Revegetation Methodology (NCCC-MD0002)

Supporting Sustainable Forestry and Local Communities by Monetizing the Entire Forest

While Japanese forests play a crucial role as CO2 sinks, proper maintenance and management have become difficult due to factors such as low timber prices, the prevalence of small and dispersed forests, a shortage of workers, and increasing management costs. In this context, there has been a growing need for mechanisms that quantitatively assess the carbon absorption functions and ecosystem services of forests and connect them to economic value.

iforest is working to create new mechanisms that redefine forests not as "assets requiring management costs" but as "assets that generate environmental value," connecting forest owners, companies, local governments, and residents. This project represents the first step in the concrete social implementation of this approach, targeting the forests of Hinohara Village, Tokyo.

Future Developments

iforest is currently implementing multiple projects nationwide on a scale of several thousand hectares, and has received consultations for the creation of additional projects totaling approximately 10,000 hectares, about 70% of which are from local governments. Moving forward, iforest will promote the creation of forest projects in a wide range of regions from Hokkaido to Kyushu, expanding the mechanism that simultaneously achieves decarbonization, regional revitalization, and biodiversity conservation.

In addition, iforest will strongly promote DX (Digital Transformation) and GX (Green Transformation) through the development of a cloud system that can create PDDs, monitoring reports, and TNFD disclosures in a one-stop manner, in addition to next-generation MRV technologies that efficiently calculate CO2 absorption, biodiversity, water resource conservation functions, and soil carbon from primary data such as LiDAR, satellite data, and field surveys.

Furthermore, in collaboration with the certification body NCCC, iforest will advance the sophistication of its systems and methodologies with an eye toward international certifications (CORSIA certification, CCP certification, etc., carbon credit quality assurance labels), aiming to expand high-quality Japanese forest-derived voluntary credits (IFOREST CREDITS) globally and build the foundation for a new regional circular economy business (natural capital economic zone) that "correctly measures, correctly values, and correctly circulates natural capital."

Company Overview

Company Name: iforest Co., Ltd.

Established: March 14, 2022

Headquarters: xBridge-Global, 3-1-3 Nihonbashi, Chuo-ku, Tokyo

Representative: Takaaki Maruyama, Representative Director & CEO

Business Activities: Creation and sales of Japanese Voluntary Credits (JVC)

Development and operation of services utilizing local timber

Development and sales of new materials and products utilizing unused woody resources

Contact Information

VISION: Reconstructing the connection between people and forests.

iforest is accepting consultations from forest owners and local governments considering the creation of forest-derived nature credits, as well as from companies considering investment in natural capital and nature-positive management. Inquiries regarding media coverage, joint research, and business partnerships are also welcome. Please feel free to contact us.

iForest Co., Ltd.

Mail: info@iforest-inc.com