#Japan #Tokyo #Ryobi Systems #Soramitsu CBDC #AWD Farming

Soramitsu CBDC and Ryobi Systems Team Up for Environmental Initiative

On June 8, 2026, Soramitsu CBDC, based in Shibuya, Tokyo, and Ryobi Systems, located in Okayama City, jointly announced that their project titled "Decarbonization through AWD Farming Promotion and Environmental Value Return Model using Digital Currency in Bangladesh" has been accepted into Tokyo's "Global South GX Promotion Project." This initiative highlights the merge of innovative farming techniques and digital finance to tackle environmental challenges in agriculture.

Achievements and Challenges

Ryobi Systems recently demonstrated significant advancements in AWD (Alternate Wetting and Drying) farming practices in Bangladesh in 2025, achieving a 20% increase in productivity while reducing methane emissions by about 30%. The project aims to expand AWD farming in Bangladesh as part of a broader strategy to cut greenhouse gas emissions in rice production. However, while these developments are promising, several challenges remain. Key issues include improving water management efficiency, accurate measurement and verification of emission reductions, and sustaining motivation among farmers to continue engaging with innovative practices.

To address these, the current project emphasizes enhancing water management processes and developing a system to return environmental value through digital currency, ensuring a sustainable eco-friendly future for farmers.

Background of AWD Farming in Bangladesh

Bangladesh is one of the world's leading rice-producing nations, with agriculture being a pivotal sector of its economy. However, the country faces technological delays, financial constraints among farmers, and inadequate agricultural support, slowing productivity growth and stable income improvements. AWD farming stands out as a water management innovation where fields alternate between flooding and drying. This technique not only conserves water but also reduces methane emissions, supporting global climate objectives.

Through ongoing AWD demonstrations since 2025, Ryobi Systems has identified issues that need to be mitigated for broader adoption of AWD practices. Challenges that surfaced focused on streamlining water management processes, efficiently monitoring and verifying emissions reductions, and providing economic incentives for farmers to keep engaging in this type of farming. The successful application of AWD can significantly improve both farming efficiency and environmental outcomes.

Strategic Vision of Soramitsu CBDC

Soramitsu CBDC’s vision is centered around leveraging digital technology to promote environmental and digital transformation (GX/DX) while solving various social issues. Collaborating with the Japanese government’s Cabinet Office, the Ministry of Economy, Trade and Industry, and the Ministry of Finance, Soramitsu has tackled numerous social challenges across six nations including Cambodia and Laos. The promotion of AWD farming combined with the implementation of digital currency is expected to significantly contribute to both decarbonization efforts and economic development in Bangladesh.

Project Details and Approach

The project’s duration extends until March 2028 and includes initial feasibility studies that will inform subsequent phases of proof-of-concept executions. Following the initial research, the project plans to expand its reach to more regions and farmers gradually, thereby establishing a sustainable operational model.

1. Effective Water Management Techniques: Integrating Japanese automated floodgates and elevation sensors with AI image analysis to enhance water management accuracy while reducing labor demands for farmers.
2. Model-Based JCM Methodology: Developing and testing methods to measure greenhouse gas reduction without relying solely on gas measurement, utilizing a mix of data on water management, soil, weather, and farming practices.
3. Digital Currency Environmental Value Return Model: Establishing a blockchain-based system to transparently return environmental values through digital currency to participating farmers. This approach effectively addresses the challenges of maintaining transparency and consistency in returning value, especially when relying on traditional cash methods.

Roles and Governance

As the lead applicant, Soramitsu CBDC drives project implementation, building out digital currency systems to manage and return environmental values effectively. Ryobi Systems supports the initiative, leveraging its expertise from previous AWD trials in Bangladesh to advance education, digital transformation in water management, and the development of agricultural data platforms.

Future Outlook

Entering the next phase of the project, significant groundwork is being laid for a scalable model. As the project evolves, it plans to roll out its innovative water management and environmental value return model not only across Bangladesh but also potentially in other regions. Soramitsu CBDC and Ryobi Systems remain committed to pioneering new agricultural GX models that utilize information communication technologies and digital currencies to foster both ecological and economic advancement in the agricultural sector of the Global South.