- Mizuho Financial Group joins the NextGen CDR Facility, marking the first Japanese bank to commit to long-term purchases of technology-based carbon dioxide removal (CDR) credits.
- This participation aims to accelerate the development and market establishment for high-quality CDR credits, crucial for achieving net-zero emissions.
- Mizuho plans to leverage its involvement to develop domestic trading platforms and support Japanese companies in the CDR sector.
Mizuho Financial Group has solidified its commitment to carbon removal technologies by joining the NextGen CDR Facility, a collaborative carbon credit purchasing initiative led by NextGen CDR AG, a joint venture between Mitsubishi Corporation and South Pole. This move establishes Mizuho as the first Japanese bank to enter a long-term purchase agreement for technology-based CDR credits, signaling a significant step in the financial sector’s engagement with advanced carbon removal solutions.
The NextGen CDR Facility focuses on promoting innovative technologies that permanently store CO2, addressing the critical need for removing historical emissions and achieving net-negative emissions. These technology-based CDR solutions are recognized for their potential to provide durable carbon storage, distinguishing them from nature-based approaches.
“Carbon credits are a system that fairly assesses efforts to decarbonize, and by sharing the cost of these efforts across regions they direct funding to technologies and projects that reduce and remove CO2 without producing economic drawbacks. In particular, we believe that creating initial demand momentum through joint purchasing of CDR credits is essential for providing funding for lesser known areas such as technology-based CDR. For Mizuho, participating in the early NextGen initiative as a buyer constitutes our first step into the technology-based CDR field at the core of decarbonization,” said Shinichi Tsunoda, Operating Officer, General Manager of Sustainable Business Promotion Department, Mizuho Financial Group, Inc.
Mizuho’s strategic involvement extends beyond credit purchases. The bank aims to acquire deep knowledge of technology-based CDR projects, resolve distribution challenges, and develop trading market platforms in Japan. This initiative supports Japanese companies in the commercialization of CDR technologies, providing both financial and non-financial assistance.
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Patrick Bürgi, Chairperson of NextGen CDR AG and Managing Director Japan / CoFounder at South Pole, stated, “NextGen CDR, and our joint venture partners South Pole and Mitsubishi Corporation, are delighted that a globally leading financial institution like Mizuho has joined us as a buyer. Carbon dioxide removals are critical to climate action, now more than ever. We need more institutions entering the market from every angle. Meanwhile, NextGen remains committed to upholding high integrity and low risk through our diversified portfolio approach.”
Ryosuke Kontani, Director of NextGen CDR AG and General Manager, Carbon Management Dept., Mitsubishi Corporation, added, “Carbon credits originating in technology-based CDR are indispensable to the achievement of a low-carbon / net-zero society. NextGen began from our ambition to advance and expand technology-based CDR, and we are very grateful to have Mizuho, a leader in the carbon credit field, participating in our facility as a new buyer. Together, Mizuho and NextGen will strive to further awareness and adoption of technology-based CDR, which is still in the early stages of becoming a market.”
Yasuchika Noma, Managing Executive Officer, Deputy Director General, Headquarters of Energy Business, Mitsui O.S.K. Lines, stated, “We are very pleased that Mizuho has joined the NextGen CDR Facility as a buyer and that we can support the spread of technology-based CDR together. Technology that removes carbon dioxide from the atmosphere and stores it on a permanent basis is essential to achieving the 1.5 degree target set out in the Paris Agreement, and through initiatives such as NextGen, we will continue to contribute to the sustainable growth of society.”
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