ENEOS and Faeger Sign Long-Term Purchase Agreement for Agricultural J-Credits
ENEOS Corporation and Faeger have signed a long-term offtake agreement for agricultural J-Credits derived from methane reduction in rice paddies. The partnership aims to support sustainable farming and climate adaptation while targeting 1 million tons of carbon credits annually.
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- 📰 Published: April 27, 2026 at 20:20
- 🔍 Collected: April 27, 2026 at 12:01
- 🤖 AI Analyzed: April 28, 2026 at 09:11 (21h 9m after Collected)
ENEOS Corporation (hereinafter "ENEOS") and Faeger Co., Ltd. (hereinafter "Faeger") have concluded a long-term purchase agreement (offtake agreement) for agricultural J-Credits. ENEOS's commitment to realizing a carbon-neutral society aligned with Faeger's track record of implementing greenhouse gas (GHG) reduction farming and climate change adaptation support, such as heat and drought stress mitigation for farmers. Consequently, both companies will launch an initiative to integrally support GHG reduction and climate change adaptation by Japanese rice farmers.
Through this initiative, we aim to create an environment where farmers can confidently adopt GHG-reducing farming methods and build a foundation for stable agricultural management under climate change. In the future, Faeger aims to create carbon credits on a scale of 1 million t-CO2 per year through expansion across approximately 20% of Japan's rice paddies. ENEOS will support this achievement to create social impact contributing to food security.
### Objectives of the Agreement
The current carbon credit market is still in its infancy, and institutional uncertainty acts as a structural barrier preventing farmers from adopting GHG-reducing farming methods. ENEOS signed this agreement to remove such barriers. By creating demand for agricultural credits at a social implementation scale equivalent to about 20% of Japan's rice paddies, we aim to establish a foundation for farmers to earn stable income. The method involves extending the traditional 'mid-season drainage' (Nakaboshi) practice. By extending this period, methane gas emissions from paddies are suppressed. Furthermore, it encourages root development, contributing to better yields and rice quality.
ENEOS Group aims to reduce Scope 1 and 2 CO2 emissions by 46% by FY2030 compared to FY2013. Faeger provides carbon credit generation and weather-resistant solution services. Both companies will strengthen cooperation in climate change adaptation beyond credit purchases to contribute to sustainable agriculture.
Through this initiative, we aim to create an environment where farmers can confidently adopt GHG-reducing farming methods and build a foundation for stable agricultural management under climate change. In the future, Faeger aims to create carbon credits on a scale of 1 million t-CO2 per year through expansion across approximately 20% of Japan's rice paddies. ENEOS will support this achievement to create social impact contributing to food security.
### Objectives of the Agreement
The current carbon credit market is still in its infancy, and institutional uncertainty acts as a structural barrier preventing farmers from adopting GHG-reducing farming methods. ENEOS signed this agreement to remove such barriers. By creating demand for agricultural credits at a social implementation scale equivalent to about 20% of Japan's rice paddies, we aim to establish a foundation for farmers to earn stable income. The method involves extending the traditional 'mid-season drainage' (Nakaboshi) practice. By extending this period, methane gas emissions from paddies are suppressed. Furthermore, it encourages root development, contributing to better yields and rice quality.
ENEOS Group aims to reduce Scope 1 and 2 CO2 emissions by 46% by FY2030 compared to FY2013. Faeger provides carbon credit generation and weather-resistant solution services. Both companies will strengthen cooperation in climate change adaptation beyond credit purchases to contribute to sustainable agriculture.