Ecobiz.asia – Japan’s Nomura Securities is conducting a feasibility study on generating carbon credits through afforestation projects in Indonesia, as Japan’s demand for carbon credits grows under its Green Transformation Emissions Trading System (GX-ETS).
Nomura announced the initiative in a statement on Thursday (Nov. 12, 2026), saying it had been selected by the Japan International Forestry Promotion and Cooperation Center (JIFPRO) to conduct the study under its fiscal 2026 program. The program is funded by Japan’s Forestry Agency to support forest restoration in developing countries.
Nomura will carry out the study in collaboration with engineering consultancy Nippon Koei and technology firm Archeda.
The study will assess the potential volume of carbon credits, identify project risks and examine the possibility of using the Joint Crediting Mechanism (JCM), a bilateral framework for carbon reduction cooperation between Japan and partner countries.
Nomura will also use satellite data and artificial intelligence to identify potential afforestation sites, monitor changes in forest cover and assess suitable monitoring methods.
The initiative comes as Japan’s GX-ETS entered its mandatory phase in April 2026 under the GX Promotion Act, increasing the role of carbon credits in corporate emissions reduction strategies.
Nomura said it had experience supporting biochar projects generating Japan’s J-Credits and developing forestry and agriculture carbon projects overseas. It aims to draw on findings from a feasibility study conducted in fiscal 2025 for a JCM afforestation project in Cambodia to support the development of forest-based carbon projects under the JCM in Southeast Asia and other emerging markets.
The study also comes amid broader efforts by Indonesia and Japan to expand cooperation on forestry carbon projects. At COP31 in Antalya, Türkiye, on Nov. 9, Indonesia’s Deputy Forestry Minister Rohmat Marzuki and Japan’s Vice Minister of the Environment Hiroshi Ono discussed opportunities to develop high-integrity carbon projects through the JCM, with peatland restoration, mangrove protection and forest rehabilitation among the proposed areas.
Rohmat said Indonesia wanted to link forestry carbon projects with economic benefits for local communities. He outlined the country’s commitments to restore 12 million hectares of degraded land through carbon removal projects and protect 50 million hectares of forest from deforestation and degradation through carbon avoidance initiatives. Indonesia also plans to develop carbon projects across 8.3 million hectares of social forests and 1.4 million hectares of customary forests.
The Indonesian government has expressed interest in supplying high-integrity nature-based carbon credits to meet potential demand from Japan. Japan has set a target of procuring around 100 million tonnes of carbon dioxide (CO₂) by 2030.
The proposed cooperation is intended to connect Japan’s demand for JCM-compliant credits with Indonesia’s priorities for ecosystem restoration, biodiversity protection and community development. ***
