Impact of Forest Fires and the Future of Burnt Forests

The Ofunato forest fire, a loss of approximately 2.17 billion yen!?

Following the Ofunato City fire, fires have also occurred in Okayama and Ehime Prefectures. The fire in Okayama Prefecture was declared extinguished on March 28, and the fire in Ehime Prefecture, which had been burning for nine days, was declared extinguished on March 31.

While the cause of the fire in Ehime Prefecture is still unknown, reports suggest that the fire in Ofunato City started from a burning pile of trash, and in Okayama, a person was reportedly using a gas burner near the fire’s origin.

According to the Forestry Agency, the most common cause of forest fires in Japan is campfires, followed by fire setting, arson (including suspected), and cigarettes. Most of these fires are human-caused. Additionally, climate change may be exacerbating the scale of forest fires due to reduced rainfall leading to dryness.

In the forest fire in Ofunato City, nearly 10% of the city was burned, with a lost area of almost 3,000 hectares. How much value did the lost forest have?

“The value of a mountain depends on the type of planting and the region. If all 3,000 hectares were cedar forests, based on the national average from the Japan Real Estate Institute, it would amount to about 2.17 billion yen.

However, looking at aerial photos from the Cabinet Office, the burnt forests also included broadleaf trees, and some of the cedar forests were left uncultivated after logging without replanting seedlings. So, I don’t think the actual value would reach this amount,” says Jun Nakamura, president of Japan Forest Regeneration Co., Ltd.

Although assuming the entire area is cedar, the figure of 2.17 billion yen seems large. However,

“Trees are categorized into A-grade timber for house pillars, B-grade for boards, and C-grade for biomass chips. All these materials can be obtained from one tree, so roughly 1 cubic meter is worth about 10,000 yen. However, the costs for harvesting and transportation are about 8,000 yen per cubic meter. Even in a healthy forest, the forest owner typically gets about 2,000 yen per cubic meter.

But when a forest is hit by a fire, the bark is scorched, making it unusable for timber. It all turns into C-grade material. C-grade material is worth about 5,000 yen per ton. Considering the costs of cutting down and transporting the wood, the more you cut, the more you lose,” says Jun Nakamura.

By using J-Credit, it is possible to generate funds for forest management

If left as it is, one might think that new buds would naturally sprout and the forest would regenerate. However,

“Trees grow through the formation layer between the bark and trunk. If the bark decays, the formation layer dies, causing the tree to die as well. Eventually, the tree will fall, so even if it’s clear that it’s a loss, it must be cut down.”

After cutting, saplings must be planted.

“Broadleaf trees can sprout new buds from their stumps, but with cedar and cypress, once the tree is cut, the roots will die and disappear in about 10 years.”

When the saplings are small, they are covered by weeds, which block the light, causing them to wither. Therefore, it is recommended to clear the underbrush for five years after planting the saplings.

No matter how far you go, it all just costs money.

It’s far too much for individuals to handle alone. In response, the government designated the forest fire in Ofunato City as a major disaster and announced its intention to provide national subsidies for forest restoration expenses.

Even if restoration is possible with government aid, it takes 50 to 60 years for the trees to grow enough to be usable as timber. During that time, there’s no income—only ongoing maintenance costs, making it extremely tough for forest owners.

One possible way to cover those maintenance costs:

“I think it’s worth considering the use of J-Credits.”

J-Credits are a system where the CO₂ absorbed by forests is certified as credits by the government and sold to companies or municipalities. It applies to forests that have been thinned after the Kyoto Protocol in 1997, and currently, one ton is worth about 6,000 yen. If 3,000 hectares of cedar forest could be registered, it could generate around 54 million yen in value per year.

The procedures are complicated, and users have been slow to increase, but Mr. Nakamura’s company also helps with J-Credit registration.

“I wanted to prove that it’s something more valuable.”

Founded in 2021 with three friends, Japan Forest Regeneration Co., Ltd. was born from a shared desire to bring new value to Japan’s forests. Before launching the company, Mr. Nakamura worked at a real estate design firm, and like his two co-founders—who were from different industries—he had no prior experience in forestry. So what drew them to such a field?

“Back when I was working in real estate, a client approached us wanting to sell some forest land. But we had no idea how to assess the value of a forest. Since I studied forest science in university, I asked a senior for guidance, and he said a hectare (about 2.5 acres) was only worth around 100,000 yen. I was shocked that it was so cheap.

That’s when I thought—if we enter the forestry world ourselves, maybe we can prove it’s worth more.”

Even though they didn’t know how to begin or what exactly forestry work entailed, they felt compelled to try something.

“Our vision is to get people back into the forests.”

Nakamura points out that signs often appear before landslides, such as cracks in the earth. If someone is visiting the forest even once a week, they can spot those early signs and take preventive action.

Today, the company owns about 120 hectares of forest in their native Tochigi, focusing on thinning and sustainable growth. They also provide consulting for forest transactions and host forestry experiences for children to spark interest in nature. Now, even some forest owners are finding creative uses for their land—setting up private campsites or mountain bike courses to open to the public, discovering new ways to unlock forest value.

“We’re sharing what we’ve done as forestry amateurs in the hope that others will follow. That’s how we believe Japan’s forests can gradually be restored.”

He also encourages people from entirely different industries to get involved and think about innovative ways to use forests.

“If anyone is struggling with forest management or inheritance issues, we’d love to hear from them. Our top priority is to preserve beautiful forests for future generations—and we’re ready to take on that responsibility.”

Click here for the website of Japan Forest Reclamation Co.