Frequently Asked Questions
What kind of service does Us Carbon Offset provide?
US Carbon Offset is a voluntary carbon offset service launched within the agriculture sector, aiming to provide benefits to us, both in the present and the future. The service operates a distinctive carbon offset program called the "US Offset Program," which adheres to international standards. Through agricultural projects developed in accordance with the program's criteria, high-quality carbon credits known as "US Credits" are generated. These credits are then sold to offset greenhouse gas emissions, serving as a global warming countermeasure service. Sold carbon credits are retired in our operational registry and managed with transparency through the public disclosure of relevant information.
How is it different from J-credit?
The following are four major differences. 1. Government-led / Private sector-led J-credit is a government-led certification system, while our offset program is a private sector-led offset service. We maximize process efficiency by providing integrated services that proceed from project development directly through to credit generation and sales. 2. Designed specifically for agriculture This offset program is specifically for projects in the field of agricultural, with the goal of providing offsets with higher added value. 3. International viability We aim to provide offset services that are viable not only in Japan but also internationally. We plan to continue developing methodologies that could be realized under the J-credit system. 4. Quantification of emission reductions + Assessment of ecological impact As a sustainable global warming countermeasure, we plan to simultaneously track the volume of emission reductions (short-term impact) as well as the impact on ecosystems (long-term impact). This is expected to generate higher quality credits while preserving the original value of ‘reducing emissions while maintaining ecosystems.
What does "tracking ecological impact" mean within Us Offset Program?
The tracking of ecological impact within the Us Offset Program involves monitoring and assessing the environmental consequences of the agricultural projects implemented under the program. It aims to understand and evaluate how these projects affect the ecological aspects of the environment. Specifically, the program tracks and evaluates the ecological impact related to sustainable food production, which is a key focus area within the agricultural sector. This includes assessing the practices and activities implemented in the projects to ensure they align with sustainable agricultural principles. Examples of ecological factors that may be considered include soil health, biodiversity conservation, water management, and ecosystem preservation. By tracking the ecological impact, the US Offset Program aims to ensure that the implemented projects not only contribute to greenhouse gas emissions reduction but also promote sustainable and environmentally responsible practices. This comprehensive approach acknowledges the interconnectedness of climate change and ecological systems, aiming to achieve a balance between addressing global warming and maintaining a healthy agricultural ecosystem.
What is the Registry?
The term "Registry" refers to a publicly accessible record that traces the journey of carbon credits from their generation and management to their retirement through transactions. By establishing and operating this distinctive registry, the Us Offset Program aims to enhance the transparency of carbon credits and promote better understanding of voluntary carbon offsetting among various stakeholders, including companies striving to achieve carbon neutrality. The registry is planned to be launched in conjunction with the first generation of credits in 2024.
What are voluntary carbon credits?
These are carbon credits obtained through voluntary greenhouse gas reduction activities carried out by various businesses that are not obligated to reduce emissions. These credits are used to compensate for the limitations of the existing market and are actively traded worldwide. The advantage of voluntary credits lies in the fact that the revenue generated from selling these credits can be used as funding for project development, creating a virtuous cycle of opportunities to continue carbon reduction projects. Global companies are actively utilizing voluntary carbon credits to achieve their self-imposed goals. For instance, Netflix, which declared carbon neutrality by the end of 2022, offset its emissions by utilizing approximately 1.5 million tons of credits acquired through around 17 projects based on 2021 criteria. Similarly, Microsoft, which aims to become carbon negative by 2030, offset its emissions by purchasing around 1.3 million tons of voluntary credits based on 2021 criteria.
Why is it necessary to offset by purchasing credits? Aren't internal emissions reduction activities sufficient?
Global companies are actively using voluntary carbon credits to achieve the goals they have set for themselves. Achieving carbon neutrality Voluntary reduction design incorporates three essential elements: Scope 1, 2, and 3 emissions. Scope 3, in particular, is challenging to comprehend and plan comprehensively. The potential for reduction through voluntary activities alone is limited, making it difficult for companies to achieve carbon neutrality on their own while considering growth targets and potential. Providing added value Agricultural credits, in particular, offer significant added value beyond simple emissions reductions. They contribute to local communities, promote sustainability through financing, and drive technological development. Accelerating the transition to a decarbonized economy Purchasing voluntary carbon credits is expected to expedite the transition toward a new decarbonized economy. Netflix, which declared carbon neutrality as of the end of 2022, offset its emissions by approximately 1.5 million tons of credits acquired through 17 projects based on 2021 criteria. Similarly, Microsoft, aiming to become carbon negative by 2030, offset its emissions by purchasing around 1.3 million tons of voluntary credits based on 2021 criteria.
How is the selling price of credits determined?
The selling price of credits is determined by a combination of internal pricing criteria and external factors that are subject to constant change. External factors include transaction rates based on supply and demand, international climate change protocols, and domestic regulations. Internal pricing factors involve shadow prices, commission fees, the complexity of the project, and the level of value added, such as local contribution, ecosystem maintenance/improvement, and contribution to technological development.
How can double-counting be avoided?
Once carbon credits are sold for offsetting purposes, they are promptly retired, and this information is publicly recorded in our operational registry. Retiring the credits ensures that they cannot be transferred to a third party or resold. Our registry is set to open in 2024 to coincide with the first generation of credits.
Are refunds possible?
Once a sale has been made, the credits are retired in the registry and are non-refundable. Please understand that this is an important measure in preventing double-counting.
What is the difference between the program and a project?
The program is the standard that defines methodologies as well as the entire process from project execution through to credit generation and sale. A project functions as a global warming countermeasure based on a methodology approved by the program. There are multiple projects within the offset program.
When and how will I receive payment?
Each ton of greenhouse gas emissions reduced or eliminated through the project is converted into one carbon credit, which is then sold to companies seeking to offset their emissions. The project participant receives the full payment from the company, minus our commission fee.
How can I participate?
The available projects and start dates may vary, so if you're interested, please reach out to us for more information.
Is it possible to withdraw before the end of the contract?
Stopping during the project period is only possible in the case of unavoidable grounds that we recognize. Even so, upon withdrawal, you will also lose your eligibility to receive payment after credit sales are made.