Japan’s NYK Group has signed a five-year agreement with Mitsui & Co. Ltd. to purchase domestically issued carbon credits, known as J-credits, starting in 2025, the shipping company announced. The deal is seen as a key step in NYK’s efforts to achieve net-zero emissions by 2050.
The J-credits secured through the agreement will be sourced from two carbon dioxide removal (CDR) projects focused on improved forest management in Hokkaido and Akita prefectures. These projects, jointly managed by Mitsui and local partners, aim to enhance CO₂ absorption through sustainable forestry practices.
To ensure the environmental integrity of the credits, Mitsui employs digital technology, satellite monitoring, and aerial surveys to track carbon absorption levels and verify sustainable forest management.
In addition to acquiring J-credits, NYK has signed partnership agreements with Hokkaido and Akita prefectures to promote decarbonisation projects, create employment opportunities, and support local economic development.
NYK did not disclose the volume or cost of the J-credits in its statement.
The shipping industry is considered a hard-to-abate sector due to its heavy reliance on fossil fuels. Japanese shipping firms, including NYK, have been increasingly investing in nature-based CDR projects to offset emissions that cannot be eliminated through internal decarbonisation measures.
On 27 January, NYK published a position paper on CDR, outlining its plan to use carbon credits from CDR projects to address residual greenhouse gas (GHG) emissions. The company aims to trial procurement and retirement of removal credits between 2025 and 2026, with a target of retiring 100,000 mtCO₂e by 2030. This is a revision of its original 200,000 mtCO₂e/year target, which was adjusted due to the immaturity of CDR technology and market conditions.
NYK is not alone in its approach. Mitsui O.S.K. Lines (MOL), another major Japanese shipping company, has also started investing in nature-based carbon assets. Recently, MOL entered a joint venture with Marubeni to expand its involvement in the nature-based CDR credit market.
As of 7 February, official data from Japan’s carbon credit exchange indicated that the benchmark price for forestation J-credits stood at ¥6,500 per mtCO₂e ($42.80/mtCO₂e).
