- NYK will buy J-credits from forest management projects in Hokkaido and Akita for five years starting in 2025 to support its net-zero goal by 2050.
- Japan’s shipping sector is turning to nature-based carbon removal credits (CDRs) to offset emissions, as decarbonization remains challenging.
- The price of forestation J-credits stood at $42.80/mtCO2e as of Feb. 7, with NYK planning to retire 100,000 mtCO2e of credits by 2030.
Japan’s NYK Group has signed a five-year deal with Mitsui & Co. Ltd. to purchase J-credits—domestically issued carbon credits—to support its net-zero emissions target by 2050. These credits come from forest management projects in Hokkaido and Akita. With the shipping industry facing hard-to-abate emissions, NYK aims to use nature-based carbon removal (CDR) credits to offset unavoidable greenhouse gases, reports SP Global.
NYK’s J-Credit Deal for Emission Offsets
NYK, a major global shipping company, will buy J-credits annually from 2025 onward under a deal with Mitsui & Co. Ltd. These credits originate from forest conservation projects in Hokkaido and Akita, managed with advanced monitoring technology using satellites and aircraft.
To further boost decarbonization, NYK has also partnered with Hokkaido and Akita prefectures to drive local economic growth and job creation. However, NYK did not disclose the volume or price of its J-credit procurement.
Tackling Hard-to-Abate Emissions
The shipping industry struggles to decarbonize, leading Japanese firms to explore nature-based CDR solutions.
NYK’s CDR Plan:
- Trial procurement & retirement of removal credits (2025-26)
- 100,000 mtCO2e of credits to be retired by 2030 (down from 200,000 mtCO2e/year due to slow CDR tech development)
Mitsui O.S.K. Lines (MOL) is also investing in nature-based carbon assets through a joint venture with Marubeni.
J-Credit Market & Pricing
As of Feb. 7, official exchange data priced forestation J-credits at ¥6,500/mtCO2e ($42.80/mtCO2e).
The CDR market is still evolving, and companies like NYK and MOL are shaping its development by actively investing in carbon offset projects.
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Source: SP Global
