Japan, Singapore – 20 February, 2025 – Mizuho Bank, Ltd. (Mizuho Bank) has entered into a Memorandum of Understanding (MoU) with GenZero, a Temasek-owned investment platform focused on accelerating decarbonisation globally, to partner on the development of transition credits to accelerate the early retirement of coal-fired power plants (CFPPs).
CFPPs are the single largest source of carbon emissions globally. Transition credits play a vital role in accelerating the early retirement of CFPPs and their transition towards cleaner energy sources. Transition credits can be generated based on the emissions reductions achieved by retiring a coal plant early. These credits can consequently be sold in carbon markets to generate an additional financial stream for plant operators and cover the costs associated with early retirement and securing alternative cleaner power sources.
This strategic partnership aims to pave the way for investments into transition credit projects and generate greater awareness on the importance of transition credits in facilitating the clean energy transition globally. Mizuho Bank and GenZero will also build on existing efforts to further collaboration between key stakeholders in Japan and Singapore to progress the transition credits agenda.
Frederick Teo, CEO of GenZero, said: “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. GenZero and Mizuho will leverage our 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. We look forward to working with Mizuho and other like-minded partners to scale decarbonisation efforts, and to drive clean energy transitions, especially in Asia.”
Shinichi Tsunoda, Executive Officer and General Manager, Sustainable Business Promotion Department, Mizuho Bank, said: “Transitioning away from coal-fired power, which is currently a core source of power, is critical to decarbonisation in Asia. One of the bigger challenges is the question of who will bear the transition costs and how they will do so. 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. GenZero is a leader in this field, being a frontrunner driving transition credits efforts. Therefore, entering into this partnership to expand adoption of transition credits with GenZero is a significant step for Mizuho. Going forward, we will work together to positively contribute to a just transition in Asia.”
About GenZero
GenZero is an investment platform company focused on accelerating decarbonisation globally. Founded by Temasek, it seeks to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.
Driven by a common purpose to decarbonise for future generations, GenZero recognises the need for a holistic and integrated approach to achieve a net zero world. It adopts a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonisation impact; and (iii) carbon ecosystem enablers that support the scaling of carbon markets and enable broader industry decarbonisation.
For more information on GenZero, visit www.genzero.co.
