Mizuho Financial Group has taken a pioneering step in the financial sector by becoming the first Japanese bank to commit to long-term purchases of technology-based carbon dioxide removal (CDR) credits. The bank’s participation in the NextGen CDR Facility, a joint venture between Mitsubishi Corporation and South Pole, is aimed at accelerating the development and market establishment of high-quality CDR solutions, which are crucial for achieving global net-zero emissions.
Mizuho’s Strategic Commitment to Carbon Removal
The NextGen CDR Facility focuses on promoting technology-driven solutions for permanently storing CO2, addressing the urgent need to remove historical emissions and drive progress toward net-negative emissions. Mizuho’s involvement highlights the growing role of financial institutions in supporting advanced carbon removal technologies, setting a precedent for other banks to follow in contributing to the decarbonization process.
Shinichi Tsunoda, Operating Officer and General Manager of Sustainable Business Promotion Department at Mizuho, emphasized, “Carbon credits fairly assess decarbonization efforts and direct funding to technologies that reduce CO2 without economic drawbacks. For Mizuho, participating in the NextGen initiative marks our first step into technology-based CDR, which is central to decarbonization.”
Expanding Beyond Credit Purchases
Mizuho’s commitment goes beyond merely purchasing CDR credits. The bank plans to acquire extensive knowledge of technology-based CDR projects, tackle challenges in distribution, and develop a domestic trading market for CDR credits in Japan. This approach not only supports Japanese companies in adopting and commercializing carbon removal technologies but also provides critical financial and non-financial support to advance these efforts.
Broadening Market Adoption
Patrick Bürgi, Chairperson of NextGen CDR AG and Managing Director at South Pole, expressed his excitement over Mizuho’s involvement, noting, “We are delighted that Mizuho, a globally leading financial institution, has joined us as a buyer. Carbon dioxide removals are critical to climate action. We need more institutions entering the market from every angle.”
The collaboration between NextGen CDR, South Pole, and Mitsubishi Corporation emphasizes the importance of driving adoption of technology-based CDR solutions, which remain in the early stages of market development. The aim is to increase awareness and build momentum for these technologies, which play a vital role in achieving the goals outlined in the Paris Agreement.
Ryosuke Kontani, Director of NextGen CDR AG and General Manager of Carbon Management at Mitsubishi Corporation, highlighted the significance of Mizuho’s participation, stating, “Technology-based CDR credits are indispensable to achieving a low-carbon, net-zero society. Together with Mizuho, we will work to raise awareness and promote adoption of these technologies.”
A Step Toward Global Climate Goals
Mizuho’s involvement in the NextGen CDR Facility signals a growing commitment from the financial sector to accelerate the transition to a sustainable, net-zero economy. As carbon removal technologies evolve, technology-based CDR will become increasingly important in meeting global climate targets, particularly for sectors that are harder to decarbonize.
Mizuho’s participation also underscores the growing intersection of finance and climate action, reinforcing the essential role of financial institutions in driving forward sustainability and climate solutions. Through initiatives like the NextGen CDR Facility, Mizuho is positioning itself as a leader in fostering the commercialization of technologies that have the potential to significantly impact the fight against climate change.
