Realizing Individual Involvement in J-Credits: A Financial Circulation Model Starting with NFTs to Preserve Owase Hinoki and Local Communities

Summary

1. The Background of Local Coop and SINRA

In response to the pressing challenges of depopulation and abandoned forests, initiatives like "Local Coop" and "SINRA" have launched to complement local government efforts. By linking J Credits—historically geared toward corporations—with NFTs, they have built an innovative financial circulation model that enables individuals to actively participate in environmental conservation, providing vital support to local communities.

2. Forest Regeneration and Corporate Collaboration in Owase City

In Owase City, Mie Prefecture, revenues from NFTs and the corporate version of the hometown tax donation scheme (furusato nozei) are being utilized to regenerate Owase Cypress forests and restore natural water veins. Beyond supporting the revival of local biodiversity, this initiative has evolved into broader cross-sector collaborations, successfully engaging external partners and major corporations.

3. Expansion to Marine Ecosystems and Future Outlook

In March 2026, the model expanded from land to sea with the launch of a "blue carbon credit" initiative in Minamiise Town, Mie Prefecture, aimed at restoring marine ecosystems. This Web3-powered framework is drawing significant attention as a pioneering case study capable of driving structural innovation in municipalities designated as "at risk of disappearance."

──What activities does Paramita Corporation engage in?

Tetsuya Osawa (hereafter, Osawa): Paramita is committed to 'Living with the Earth 100 years from now,' addressing societal challenges such as Japan's declining population and climate change. We aim to balance 'a world where nature continuously regenerates' with 'a future where local economies are sustainable,' by developing 'Local Coop' as a system to complement municipalities.

──What is Local Coop?

Osawa: It is a system born from the concept of a 'second municipality' in an era of population decline. By securing resources and talent beyond taxes, it creates infrastructure and public services autonomously and collaboratively with residents and businesses.

This initiative is underway in four regions: Tsukigase, Nara City, Nara Prefecture; Owase City, Mie Prefecture; Mizukubo Town, Tenryu Ward, Hamamatsu City, Shizuoka Prefecture; and Tatsugo Town, Kagoshima Prefecture (Amami Oshima). In Tsukigase, Nara Prefecture, for example, resident-led waste collection has begun, addressing local issues.

We also engage in environmental restoration activities on a watershed basis, including rivers and surrounding forests, utilizing sales revenue from NFTs.