Table of Contents
- 1 Providing valuable new services for both carbon credit generators and purchasers
- 2 Outline of the Demonstration Experiment
- 3 background
- 4 Future Initiatives
- 5 About EverImpact, Inc.
- 6 About Ishinomaki District Forestry Association
- 7 About Hitachi Systems Carbon Neutral
- 8 Carbon Neutral x IT concept video
- 9 About Hitachi Systems, Ltd.
- 10 Details of the Demonstration Experiment
Providing valuable new services for both carbon credit generators and purchasers
Hitachi Systems plans to use the know-how gained from this verification experiment to provide total support for carbon credit creation and transactions toward carbon neutrality*2, and to start offering a valuable new service to both credit creators and purchasers, such as local governments, forestry cooperatives, and forest holding companies, by the end of FY2024. The project is scheduled to begin by the end of FY2024. This will support the revitalization of Japan's forestry industry, which covers approximately 70% of the country's land, and accelerate the supply and demand (creation and sale) of carbon credits by local governments, forestry cooperatives, and companies, with the aim of becoming carbon neutral and contributing to Japan's economic growth.
*1 Carbon credits: A system that allows companies to issue credits (emission rights) for reductions in CO2 and other greenhouse gases (reductions and absorption) resulting from the installation of energy-saving equipment, forest protection, afforestation, etc., and to trade them with other companies and other entities.
*2 Carbon Neutral: Zero CO2 and other greenhouse gas emissions in real terms
Outline of the Demonstration Experiment
In cooperation with EverImpact, we visualized the amount of CO2 absorption for the past 20 years by analyzing data obtained from satellites based on the Intergovernmental Panel on Climate Change (IPCC*3) scenarios. The data was analyzed based on the Intergovernmental Panel on Climate Change (IPCC*3) scenario. Furthermore, by combining the visualized information with forest plans, the amount of carbon credits generated was calculated.
This verification experiment adopted the "Voluntary Credit VCS (Verified Carbon Standard)" certified by Verra, an American non-profit organization (NPO) that boasts a market share of approximately 701 TP3T in the voluntary credit*4 market. The VCS is a voluntary carbon standard that is being used worldwide to create, buy, and sell carbon credits. The VCS is also approved for measurement by remote sensing (observation) using satellites, etc., and can be expected to increase the amount of carbon credits generated on a large scale and quickly.
Through this verification experiment, Hitachi Systems was able to confirm the possibility of absorbing 225,000 tons of CO2 per year and generating carbon credits worth up to 260 million yen.
*3 Intergovernmental Panel on Climate Change (IPCC): An organization established to conduct comprehensive assessments of anthropogenic climate change and impacts from scientific, technological, and socioeconomic perspectives.
*4 Voluntary credits: Carbon credits issued under the initiative of the private sector, including NPOs, companies, and organizations.
According to IPCC simulations, the amount of CO2 emissions that cannot be fully reduced by 2050 is estimated to be 10 billion tons. Therefore, the use of carbon credits is one of the most important means to achieve carbon neutrality.
Japan, with 70% of its land covered by forests, is said to have the potential to create carbon credits through the use of nature. However, many forests are left unimproved and are not being utilized.
Hitachi Systems plans to start providing a total service from the visualization of CO2 absorption by satellite data to credit transactions by the end of FY2024, utilizing the know-how gained from this demonstration experiment and the knowledge of creating voluntary credits over a vast area of several thousand hectares, which is unprecedented in Japan. We plan to start providing this service by the end of FY2024.
This will allow local governments, forestry cooperatives, and companies that plan to create carbon credits to utilize a nationwide network of about 300 bases to expand their business throughout Japan, and at the same time contribute to local communities by solving issues related to forests in Japan, which has a large forest area, and by promoting the revitalization of the forestry industry and thus regional revitalization and decarbonization. We also aim to contribute to local communities by solving issues related to forests in Japan, a country with a large forest area, and by promoting regional revitalization and decarbonization. In addition, we plan to create J-credits when the J-credit system, Japan's certified carbon credit system, approves the use of satellites.
About EverImpact, Inc.
EverImpact is a company specializing in monitoring GHG emissions using satellite and ground sensor data. It has developed real-time carbon monitoring solutions and deployed urban, institutional, and nature-based solutions, which are now being piloted in Europe and Asia. Through a partnership with Hitachi Systems, the company is expanding in the Japanese market.
For more information. https://www.everimpact.com/ for more information.
About Ishinomaki District Forestry Association
Ishinomaki District Forestry Association is a broad-based forestry cooperative that covers Ishinomaki City, Higashimatsushima City, and Onagawa Town in Miyagi Prefecture. Focusing on forest maintenance, timber production and sales, and timber recycling, the cooperative aims to revitalize forests and forestry by promoting environmental considerations, and is working to realize a "wood first" society that takes the initiative in utilizing timber, such as by promoting the use of biomass power generation chips and timber for public housing. Through collaboration with Hitachi Systems, we aim to contribute to local communities through the promotion and development of the local forestry industry.
For more information. http://ishikumi.or.jp/ for more information.
About Hitachi Systems Carbon Neutral
Carbon Neutral x IT concept video
About Hitachi Systems, Ltd.
Hitachi Systems is promoting sustainability management as a member of the Hitachi Group's Social Innovation Business in order to "contribute to the realization of a truly affluent society," as stated in our Corporate Mission.
Digitalization services that leverage human resources and service infrastructure with customers' business knowledge and know-how cultivated through solving issues in various industries, which is our strength, and unique services in collaboration with Lumada and partners that utilize Hitachi's advanced digital technology to provide thorough digital transformation We will provide thorough support for digital transformation through our unique services in collaboration with Lumada and our partners.
We not only solve social issues, but also help improve the quality of life of people and the value of our customers by contributing to the enhancement of three values: social value, environmental value, and economic value.
For more information. https://www.hitachi-systems.com/ for more information.
Details of the Demonstration Experiment
The forests under the jurisdiction of the Ishinomaki District Forestry Cooperative in Miyagi Prefecture are to be tested to see if CO2 absorption can be easily visualized in collaboration with EverImpact, a French start-up company with satellite-based GHG emissions measurement technology.
Furthermore, the calculated data will be used to evaluate the feasibility of creating a voluntary credit VCS.
- Demonstration experiment period
October 2022 - March 2023
- Target Area
Thousands of hectares of forest under the jurisdiction of the Ishinomaki District Association in Miyagi Prefecture
- Details of implementation
and satellite data, and confirmed that CO2 absorption over a vast area can be easily measured and visualized.
The CO2 absorption level distribution chart, monthly and annual graphs, and comparative graphs are easy to understand and visualize.
■Distribution of CO2 absorption levels (compared to 20 years ago)
■Monthly CO2 absorption in FY2021
CO2 absorption from 2002 to 2022
The amount of credits generated was calculated based on the analysis of satellite data, enforcement history, and plans.
We have succeeded in confirming the potential to generate carbon credits worth up to 260 million yen with an annual CO2 absorption capacity of 2.25 million tons.
|name of company||Hitachi Systems, Ltd.|
|Location||1-2-1 Osaki, Shinagawa-ku, Tokyo|
|uniform resouce locator||https://www.hitachi-systems.com/|