ENEOS and Faeger Sign Long-term Purchase Agreement for Agricultural J-Credits
ENEOS and ag-tech startup Faeger have signed an offtake agreement for J-Credits derived from rice farming. Aiming for a scale equivalent to 20% of Japan's rice paddies, the partnership supports GHG reduction through extended drainage and stabilizes farmer income.
📋 Article Processing Timeline
- 📰 Published: April 27, 2026 at 20:25
- 🔍 Collected: April 27, 2026 at 12:01
- 🤖 AI Analyzed: April 28, 2026 at 09:10 (21h 8m after Collected)
ENEOS Corporation (hereinafter "ENEOS") and Faeger Co., Ltd. (hereinafter "Faeger") have signed a long-term purchase agreement (offtake agreement) for agricultural J-Credits. This initiative stems from the alignment between ENEOS's commitment to a carbon-neutral society and Faeger's track record in reducing greenhouse gases (GHG) through specialized farming methods and supporting adaptation to climate change, such as heat and drought stress. The two companies will launch a joint effort (hereinafter "this initiative") to integrally support GHG reduction and climate change adaptation by Japanese rice farmers.
Through this initiative, the companies aim to create an environment where farmers can confidently adopt GHG-reducing farming methods and build a foundation for stable agricultural management even under climate change. In the future, Faeger aims to expand the project to a scale equivalent to approximately 20% of Japan's rice paddies, generating 1 million tons of CO2 credits annually. ENEOS will support this goal to create a social impact contributing to food security.
### Objectives of the Agreement
Currently, the carbon credit market is still developing, and institutional uncertainties act as structural barriers preventing farmers from adopting GHG-reducing methods. Although the effects and significance of such methods are recognized, it is not easy for farmers to change their practices without prospects for continuous revenue.
ENEOS signed this agreement with the aim of removing such challenges. By creating demand for agricultural credits at a social implementation scale equivalent to 20% of Japan's paddies, the goal is to establish a foundation for farmers to earn stable income. The method farmers are asked to adopt is an extension of "mid-summer drainage," a practice long rooted in Japanese rice farming. Mid-summer drainage involves draining the paddy for a certain period to dry the soil. In this initiative, extending this period suppresses methane gas emissions from the paddy, leading to GHG reduction. Additionally, facilitating oxygen supply to the soil encourages root development, helping maintain the vitality of roots from heading to harvest, thus contributing to yield and rice quality.
### Impact and Sustainability
In recent years, quality degradation due to summer heat and drought has become a challenge across Japan. This initiative is significant not only for its contribution to GHG reduction but also for ensuring stable food production through the maintenance and improvement of quality and yield. Furthermore, by ENEOS creating long-term credit demand, farmers will receive continuous credit income from the extended drainage. Farmers can allocate this income to climate-adaptive farming technologies and materials. Through this cycle of funds and technology, the companies aim for the social implementation of sustainable farming that advances both GHG reduction and climate change adaptation.
ENEOS Group is striving to achieve its goal of reducing Scope 1 and 2 CO2 emissions by 46% by fiscal 2030 (compared to fiscal 2013) by promoting initiatives to generate and utilize agricultural J-Credits, aiming to balance the stable supply of energy and materials with the realization of a carbon-neutral society.
Faeger provides agricultural carbon credit generation and weather-resistant solution services for climate change adaptation both in Japan and overseas, aiming for sustainable agriculture. They specialize in the agricultural field and promote these initiatives alongside farmers.
The two companies will further strengthen their cooperation not only in credit purchases but also in climate change adaptation efforts. They aim to contribute to the realization of sustainable agriculture that can maintain stable food production even under the influence of climate change.
Through this initiative, the companies aim to create an environment where farmers can confidently adopt GHG-reducing farming methods and build a foundation for stable agricultural management even under climate change. In the future, Faeger aims to expand the project to a scale equivalent to approximately 20% of Japan's rice paddies, generating 1 million tons of CO2 credits annually. ENEOS will support this goal to create a social impact contributing to food security.
### Objectives of the Agreement
Currently, the carbon credit market is still developing, and institutional uncertainties act as structural barriers preventing farmers from adopting GHG-reducing methods. Although the effects and significance of such methods are recognized, it is not easy for farmers to change their practices without prospects for continuous revenue.
ENEOS signed this agreement with the aim of removing such challenges. By creating demand for agricultural credits at a social implementation scale equivalent to 20% of Japan's paddies, the goal is to establish a foundation for farmers to earn stable income. The method farmers are asked to adopt is an extension of "mid-summer drainage," a practice long rooted in Japanese rice farming. Mid-summer drainage involves draining the paddy for a certain period to dry the soil. In this initiative, extending this period suppresses methane gas emissions from the paddy, leading to GHG reduction. Additionally, facilitating oxygen supply to the soil encourages root development, helping maintain the vitality of roots from heading to harvest, thus contributing to yield and rice quality.
### Impact and Sustainability
In recent years, quality degradation due to summer heat and drought has become a challenge across Japan. This initiative is significant not only for its contribution to GHG reduction but also for ensuring stable food production through the maintenance and improvement of quality and yield. Furthermore, by ENEOS creating long-term credit demand, farmers will receive continuous credit income from the extended drainage. Farmers can allocate this income to climate-adaptive farming technologies and materials. Through this cycle of funds and technology, the companies aim for the social implementation of sustainable farming that advances both GHG reduction and climate change adaptation.
ENEOS Group is striving to achieve its goal of reducing Scope 1 and 2 CO2 emissions by 46% by fiscal 2030 (compared to fiscal 2013) by promoting initiatives to generate and utilize agricultural J-Credits, aiming to balance the stable supply of energy and materials with the realization of a carbon-neutral society.
Faeger provides agricultural carbon credit generation and weather-resistant solution services for climate change adaptation both in Japan and overseas, aiming for sustainable agriculture. They specialize in the agricultural field and promote these initiatives alongside farmers.
The two companies will further strengthen their cooperation not only in credit purchases but also in climate change adaptation efforts. They aim to contribute to the realization of sustainable agriculture that can maintain stable food production even under the influence of climate change.