Mizuho Bank will offer loans with carbon dioxide emission credits for purchases of greener cars and renovation work to make homes more environmentally friendly starting Thursday, sources said Wednesday.
Under the loan program, Mizuho Bank will purchase credits worth 1.4 tons of carbon dioxide emissions, equivalent to a quarter of the average household’s annual emissions, per loan.
The bank will then donate the credits to the government and give the borrowers certificates for the donation, with the aim of enabling them to acknowledge their contribution to the prevention of global warming, the sources said.
The bank has been offering preferential interest rates to support environmentally conscious purchases, but decided to expand its services in the area given the government’s target of cutting emissions by 25 percent from 1990 levels by 2020.
Mizuho Bank is also considering offering similar loans to purchasers of environmentally friendly housing, they added.
Sumitomo Mitsui Banking Corp. offered housing loans with emission credits for half a year in 2008 and Suruga Bank, based in Shizuoka Prefecture, currently offers similar services.
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