Green Carbon and Toyota City Launch Japan's First Nationwide AWD J-Credit Methodology Demonstration Project via Corporate Hometown Tax

Green Carbon Inc. (CEO: Jun Okita), a company engaged in nature-based carbon credit creation and sales, has launched a 'nationwide first' demonstration project (the 'Project') for the new J-Credit methodology of AWD (Alternate Wetting and Drying) (*1) in collaboration with Toyota City, Aichi Prefecture. This follows the 'Cooperation Agreement on the Creation and Promotion of Agricultural Carbon Credits' signed on November 14, 2025, aimed at improving the income of farmers in Toyota City and promoting environmental load reduction city-wide.

Building on the results of the preliminary demonstration conducted in Toyota City this fiscal year, this project expands the field to a national scale, aiming for nationwide deployment that contributes to farmers' income and environmental load reduction. To promote this project, we are widely recruiting companies that agree with the initiative through Toyota City's Corporate Hometown Tax (*2).

[Overview] - Implement AWD (a water management technique that suppresses greenhouse gases and water usage by alternating flooding and drainage) in 10 regions nationwide, collecting two years of data considering regional and soil differences. - Conduct greenhouse gas sampling and have research institutions investigate and analyze emission levels. - Lead the project toward methodology establishment based on Toyota City's preliminary demonstration, establishing an environmental load reduction model in the agricultural sector and expanding it nationwide.

[Purpose/Effect] Understand the emission and water reduction effects of AWD through actual measurements, prepare basic data necessary for J-Credit methodology, and proceed with discussions and considerations for application to the national government.

[Corporate Hometown Tax] - Recruitment start: April 1, 2026 - Required donation: 50 million yen/year - Use of funds: Demonstration equipment costs, research/analysis outsourcing, on-site verification, and honorariums for cooperating farmers.

(*1) AWD (Alternate Wetting and Drying): A technique of repeating water intake and natural drying every few days based on water levels in paddy fields. It reduces water usage compared to continuous irrigation and contributes to water resource conservation. (*2) Corporate Hometown Tax: A system where companies can receive a tax deduction of up to approximately 90% of the donation amount from corporate taxes by donating to regional revitalization projects certified by the government.