Mizuho Bank, GenZero ink MOU for transition credit-use

They aim to develop capital raising mechanisms that use the credits.

Mizuho Bank has signed a memorandum of understanding with Temasek-owned decarbonisation-focused investment platform, GenZero.

Under the MOU, Mizuho Bank and GenZero will jointly develop capital raising mechanisms that make use of transition credits, in particular carbon credits. They will also work together to design frameworks for transition credits.

Transition credits are a financial mechanism that aims to promote the early retirement of coal-fired power plants and transition to renewable and alternative energy.

These credits involve a quantitative assessment of the CO2 emissions from coal-fired power plants’ operations, Mizuho said in a press release.

Mizuho Bank said that it will “intensify its efforts to develop innovative financing methods utilizing carbon credits.”

“In partnership with GenZero, the bank will also provide information to enhance awareness of transition credits amongst Japanese companies,” the press release said.GenZero is an investment platform company owned by Temasek, a Singapore-owned investment 

firm. It reportedly focuses on accelerating decarbonisation.