Exploring the Intersection of Carbon Markets: Insights from Yusuke Kinoshita

CARBON JUNCTION - Intersection of My Life and the Carbon Market (Vol. 2)

In the recently published second installment of the 'CARBON JUNCTION - Intersection of My Life and the Carbon Market' series, exroad Inc. (Headquartered in Minato-ku, Tokyo) continues to offer a comprehensive database for carbon credits and emissions trading systems. This column aims to share personal insights from professionals in the carbon market about their experiences, motivations, and visions for their work, allowing readers to connect with the individual's unique journey.

Yusuke Kinoshita, head of the Carbon Solutions Business Unit at Sumitomo Corporation's Energy Innovation Initiative, shares his intriguing life story shaped by significant experiences and transformative moments. Having joined Sumitomo Corporation, he initially worked in sectors like cement, food, and investment evaluations before he began leading carbon credit-related businesses in 2021. With an aim to build bridges within the industry, this column aspires to spark conversations and connections around carbon markets, encouraging interactions both inside and outside the industry.

Kinoshita's journey began when he found himself immersed in the vibrant chaos of India as a child. In 1993, due to his father’s job, he moved to Mumbai (formerly Bombay) and experienced a drastic change in his environment. Whether it was the pungent aromas in the air or the sight of cows roaming the streets, everything fascinated him. His early experiences in India also twisted his perceptions of economics and hygiene, as he learned that a mere 1 rupee could buy a bunch of bananas, quite different from his life in Japan. Over time, he relied on VHS tapes sent by his grandmother to keep up with Japanese trends, a unique pastime during his childhood in a foreign land.

In 1997, after returning to Japan, he was aware of his unique perspective on climate issues post-Kyoto Protocol. Playing rugby shaped his identity, translating his childish passion into the professional realm of an integrated trading company. However, upon joining, he found his first assignment to be in domestic sales within the cement division, far from the international business he had envisioned. The conversation around cement as a carbon-emitting industry was absent, as he was grappling with mega-projects like the Tokyo Skytree and Haneda Airport's terminal expansion.

Kinoshita’s involvement in various departments eventually led him to New Zealand's forestry sales project, humorously guided by colleagues who reminded him of his rugby past and his name, Kinoshita (meaning 'under the trees'). As he ventured into forest acquisition, a pivotal moment came when he stumbled upon a clause for purchasing carbon credits – New Zealand Units (NZUs). At that time, carbon credits were negligible in cost compared to the entire acquisition. It became his first tangible interaction with carbon credits, laying the groundwork for his current expertise.

In 2015, during his time in New Zealand, the Paris Agreement reignited his curiosity towards carbon pricing as it gained traction, reflecting on how this growing interest began to unfold in the exciting yet chaotic world of carbon credits. Kinoshita recalls that while the industry's evolution seems like an early chapter, he is optimistic about its future and aims for collective progress. He dreams of industry leaders convening in 2050 to reflect on their achievements, possibly even hosted by exroad.

Currently, Kinoshita's focus is on voluntary credits developed from mangrove reforestation efforts in Indonesia, reiterating a commitment to both personal and environmental growth.

The 'CARBON JUNCTION' series aims to feature more personalities from the carbon market, inviting readers to witness the diverse stories and motivations shaping this evolving landscape. For those interested, the newsletter offers insights into critical topics within the carbon credit space.

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Company Overview:

- Name: exroad Inc.
- Location: Minato-ku, Tokyo
- CEO: Keisuke Kimura
- Established: March 2022
- Service: All-in-one database for carbon credits and emissions trading systems
- Website: exroad.jp

In conclusion, the journey through carbon markets is only just beginning, and this column invites you along for the ride as it unfolds.