Business / Corporate

Mizuho to tighten rules on lending to coal-fired power plants in line with other Japan banks

JIJI

Mizuho Financial Group Inc. said Wednesday that it will tighten lending standards for coal-fired power plants with high emissions of carbon dioxide, as part of its efforts to combat climate change.

Mizuho will also provide discussion and consulting services for clients who want to “decarbonize,” or reduce emissions per unit of electricity generated by their thermal power plants.

Previously, loans to coal-fired plants were decided on a case-by-case basis in line with levels of carbon dioxide-cutting technology and economic efficiency.

From July, new loans will generally be granted only to thermal power plants that use so-called ultrasupercritical pressure to increase efficiency and reduce carbon dioxide emissions, or use even more efficient systems.

Industry rival Sumitomo Mitsui Banking Corp. already applies the same standard to new loans to coal-fired power plants. Mitsubishi UFJ Financial Group Inc. plans to generally stop giving loans to coal-fired power plants.

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