Updated by "Forest Circular Economy" Editorial Board on January 22, 2026, 7:50 PM JST
Editorial Board, Forest Circular Economy
Forestcircularity-editor
We aim to realize "Vision 2050: Japan Shines, Forest Circular Economy" promoted by the Platinum Forest Industry Initiative. We will disseminate ideas and initiatives to promote biomass chemistry, realize woody and lumbery communities, and encourage innovation in the forestry industry in order to fully utilize forest resources to decarbonize the economy, strengthen economic security, and create local communities.
Kignas Sekiyu K.K. has started a demonstration sale of carbon offset fuel using forest-derived J-credits created by the Nagasaki Forestry Corporation. This is an initiative to offset CO2 emissions from diesel fuel supplied to Sanai Oburi LPG transportation with the amount of CO2 absorbed by the local forests in Nagasaki. By returning the credit earnings to the local community, the company aims to contribute to the revitalization of the local community by creating a cycle of energy consumption and utilization of forest resources.
This demonstration sale targets diesel fuel used by Sanai Oburi LPG Transport's lorries, which are responsible for the stable supply of LP gas in the Kyushu region. By offsetting 10% of the diesel oil supplied by Kignas Sekiyu, the company plans to reduce CO2 emissions by approximately 20 tons during the period.
The J-credits to be utilized are from Nagasaki Prefecture, where Sanai Oburi LPG Transportation is based. Forest-derived J-credits are created through forest management, such as proper thinning and afforestation. By using fuel with these credits attached, consumers can realistically promote decarbonization while utilizing existing facilities. At the same time, the transaction value of the credits is returned to the community from which they were generated.
The Nagasaki Forestry Corporation, which owns the J-credits, also sees great significance in the value created by local forest maintenance, which contributes to the realization of a sustainable supply chain. Securing sustainable financial resources for forest conservation is a common issue throughout Japan, and the spread of such community-based offset models will provide an opportunity to change the flow of funds.
Kignas Sekiyu is considering further development of this system for factories, transportation companies, and other customers. This attempt to incorporate the environmental value of forests into economic activities in the form of energy supply is truly a practical model case that embodies the circular forest economy.
Reference Links
Launch of Carbon Offset Fuel Demonstration Sales Using Forest-Derived J-Credits (Kignas Sekiyu K.K.)
