Mizuho Bank has partnered with GenZero, owned by Singapore sovereign wealth fund Temasek, to develop transition credits for the phasing out of coal-fired power plants (CFFPs). Mizuho Bank is a Japanese financial services company, while GenZero is an investment platform focused on accelerating decarbonisation globally. According to GenZero, CFFPs are the largest source of carbon emissions globally. Frederick Teo, CEO of GenZero, said that the two entities would leverage their collective expertise and regional connections to collaborate on energy transition opportunities, build greater awareness for transition credits, and unlock opportunities to support coal-to-clean initiatives. “As a major global economy, Japan’s technological capabilities, commitment to climate goals, and active participation in regional and international cooperation makes it an essential market in advancing Asia’s decarbonisation agenda,” he added. One of the main challenges to pivoting away from coal as a source of power is the question of who will bear the costs. Shinichi Tsunoda, Executive Officer and General Manager, Sustainable Business Promotion Department at Mizuho Bank, said: “By ensuring fair evaluation of decarbonisation initiatives and fair sharing of costs across regions, transition credits open a path for quickly withdrawing from coal-fired power while avoiding economic drawbacks.”
