Can carbon finance boost Japan’s ailing forestry industry?

Can carbon finance boost Japan’s ailing forestry industry?

Friday 12 Jun 2026

Japan’s forestry sector is at a crossroads. Population decline and cheap imported timber are driving down prices. Forest ownership is fragmented and small-scale, further limiting profitability. The workforce is aging and shrinking. As a result, many forests — planted decades ago, when timber profits seemed surer — are now under-managed, abandoned, or not replanted after being clear-cut.

“Especially over the past few years, we have seen a lot of forest owners decide to give up their land,” says Akio Abe, associate director of the Ishinomaki District Forestry Association in Miyagi Prefecture. “The underlying reason is that the value of forests has dropped so much.”

Roughly 40% of Japan’s total forest area has been planted. These are often dense, monoculture stands of cedar or cypress that are at risk of ecological degradation without human intervention, particularly through thinning. However, low profitability leaves many foresters and forest owners with their hands tied, unable to either manage the woods for timber or restore them as self-sustaining ecosystems.

Enter a mechanism that could benefit industry and the planet

Carbon credits, Abe hopes, can provide the financial backing needed to turn the Ishinomaki District woods into a boon, not a burden, for both local landowners and the environment. Together with corporate partners, the foresters are applying for credits certified by an international body, a rarity among forest carbon projects in Japan. With plans to nurture their forests in new ways going forward, the project members hope to lead by example in a sector where business as usual has become untenable.

More >>

Source: The Japan Times
Image credit: Everimpact

Return to Newsletter

Share |