CASE STUDY 13 Mizuho – carbon credits as a funding mechanism for decarbonization projects Since Japan’s launch of the J-Credit scheme in 2013, Mizuho Research & Technologies has been appointed by the Ministry of Economy, Trade and Industry and the Ministry of the Environment to serve as the scheme’s secretariat and has contributed to its development. Mizuho Bank operates as a market maker in the carbon credit market on the Tokyo Stock Exchange and has been recognized as the best market maker for two consecutive years. Outside of Japan, Mizuho has partnered with the London Stock Exchange Group and Climate Impact X, a carbon credit exchange based in Singapore, to enhance global collaboration and joint efforts. Mizuho is focusing on transition credits, an advanced financial mechanism designed to encourage the early retirement of coal-fired power plants and the transition to renewable energy sources – also discussed in Case Study 12. This mechanism involves a quantitative assessment of CO2 emissions from the continued operation of coal-fired power plants and the reductions resulting from their retirement. The reductions are converted into environmental value (generation of carbon credits) and the profits from the sale of these credits are directed towards the costs of early retirement and alternative energy generation. Recently, Mizuho has joined the NextGen CDR Facility as a buyer of technology-based carbon dioxide removal (CDR) credits, becoming the first Japanese bank to conclude a long-term purchase agreement for these credits. By participating in this collaboration, Mizuho will gain insight into the characteristics of technology-based CDR projects and develop expertise in resolving issues related to the distribution of carbon credits. The company also plans to design frameworks and develop trading market platforms to establish a technology-based CDR market in Japan. In the long term, it aims to support Japanese companies in commercializing technology-based CDR, providing both financial services and consultancy. Source: expert interview with Mizuho. Asia’s Carbon Markets: Strategic Imperatives for Corporations 45

Asia's Carbon Markets Strategic Imperatives for Corporations 2025