[Waste Biomass Processing Challenges Become “Credit Assets”] Honda Trading’s “Decarbonization Project through Biochar Application to Farmland” Receives Official J-Credit Certification

— A new model of environmental business that streamlines small-scale initiatives through a “program-based” approach, supporting corporate carbon offsetting and delivering benefits to both farmers and companies —

Honda Trading Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President & CEO: Tatsuya Natsume; hereafter “Honda Trading”) is pleased to announce that its “Decarbonization Project through Biochar Application to Farmland,” which contributes to solving waste biomass processing challenges and achieving carbon neutrality, has been officially certified by the 65th J-Credit Certification Committee held on July 29, 2025.

This project, developed in partnership with agricultural corporations, produces government-certified, high-integrity carbon credits by carbonizing previously hard-to-process biomass and applying the resulting material to farmland. By implementing a program-based project framework that unites multiple farmers, we create opportunities for small-scale farms to actively participate while balancing environmental sustainability with economic viability. Through this collaborative initiative, we aim to foster a more sustainable agricultural sector and contribute meaningfully to the broader goal of decarbonization.

Overview of J-credit Program-based Projet Framework

Background

In the agricultural sector, the processing of waste biomass presents social challenges, including increased CO₂ emissions from incineration and rising disposal costs. At the same time, “carbon credits” are attracting attention as an important mechanism to support decarbonization efforts by companies and local communities toward achieving carbon neutrality by 2050.

Project Overview: Biochar Production from Waste Biomass and the Program-Based Framework

This project transforms waste biomass into biochar and applies it to farmland, enabling long-term carbon sequestration in the soil. The resulting reductions and storage of carbon are quantified as J-Credits, effectively linking environmental benefits to economic value. By leveraging a program-based framework that brings together multiple agricultural corporations, even small-scale farmers can efficiently generate carbon credits—helping to scale the initiative across the region.

Project Features: Balancing Environmental and Economic Value

This initiative enables a stable supply of highly reliable carbon credits from the agricultural sector. Additionally, biochar improves soil water retention and aeration, contributing to increased farmland productivity. As a result, farmers can reduce waste biomass processing costs, gain new revenue opportunities, and promote sustainable agriculture. The generated credits can be utilized for corporate carbon offsetting, the Keidanren Carbon Neutral Action Plan, and various other applications.

Future Outlook

The first program, set to launch in November 2025, will focus on establishing a robust operational framework and begin with a select group of partner agricultural corporations. Starting with the second program in 2026, we will broaden participation by recruiting additional agricultural partners and further enhancing our operational capacity. Updates and detailed information will be shared through our website and future announcements.

Honda Trading will continue to accelerate decarbonization across society by addressing waste challenges, promoting sustainable agriculture, and creating new environmental business opportunities.

*1: Biochar
A solid material produced by heating biomass such as wood or crop residues to over 350°C in a low-oxygen environment. When mixed into soil, it improves water retention and aeration, and can sequester carbon for long periods, making it effective for climate change mitigation.

*2: J-Credit Scheme
A government-certified system that recognizes reductions and absorption of GHG emissions through the introduction of energy-saving equipment, use of renewable energy, and application of biochar to farmland. The generated credits can be used for the Keidanren (Japan Business Federation) Carbon Neutral Action Plan, carbon offsetting, and various other purposes.