Updated by "Forest Circular Economy" Editorial Board on January 29, 2026, 7:29 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.
Stellar Green, Sagawa Express, and Water Scape are conducting a demonstration project from August 2025 to December 2026 in the Takao 100-Year Forest in Hachioji City, Tokyo, using satellite data and AI to monitor the forest and visualize the effects of water source recharge. The project has been adopted by the Tokyo Metropolitan Government under its "Absorption and Removal Carbon Credit Creation Promotion Project," and aims to quantify the multifaceted environmental value of the forest and build a new circular economy model in which the local community and the city support each other.
This project will be promoted through the collaboration of three companies: Sagawa Express, which will provide the fields; Stellar Green, which is well versed in data technology and the J-credit system; and Water Scape, a Suntory Group company responsible for quantifying the water cycle. The aim is to build a mechanism to make the environmental value of forests function in the economy by taking advantage of the expertise of each of the three companies.
Stellar Green replaces conventional aerial laser measurement and combines patented satellite data with AI correction to continuously monitor forest growth. It lowers the cost and frequency of work, and lowers the hurdle for assessment of absorption required for J-credit creation.
Water Scape uses specialized knowledge to quantitatively visualize the movement of groundwater stored by forests and changes in the water cycle. By scientifically evaluating the water source recharge function of "forests produce water," a mechanism to add value to the credits will be verified. At this stage, it is difficult to treat water and biodiversity as independent credits, but by evaluating them together with carbon absorption, the project aims to improve the quality of the credits themselves.
The "Takao 100-Year Forest," where the demonstration will take place, is a 50-hectare field that Sagawa Express has been preserving since 2007. The value of natural capital, which has been overlooked, will be converted into economic value through a fusion of on-the-ground knowledge cultivated through years of satoyama management and the latest data science.
Many forests in Japan are difficult to manage due to stagnant timber prices and a lack of bearers. However, if we can visualize the environmental value that forests inherently possess in terms of carbon, water, and ecosystems, this will serve as an indicator for both local communities and cities to support forests. The "urban model of natural capital" from Takao, Tokyo, has the potential to become a new standard for sustainable forest management.
Reference Links
Takao 100-Year Forest Project│Sagawa Express Co.
Press Release Takao 100-Year Forest Project | Stellar Green Co.
Announcement] Start of demonstration project in the Takao 100-nen-no-mori project (Water Scape Co., Ltd.)
