Insight & Analysis

Press release: Mizuho and Climate Impact X join forces to scale international carbon credit market in Asia

Published: Nov 2023

28th November 2023Mizuho Financial Group and Singapore-based global carbon marketplace and exchange Climate Impact X (CIX) are partnering to jointly cater to growing demand for international carbon credits among companies in Japan. The strategic partnership via investment aims to facilitate cross-border trading and connectivity between markets, which both companies believe are crucial to resolve imbalances in the demand and supply of carbon credits and help to scale the market effectively.

Press release news paper

Carbon credits are one of the primary tools available right now that can mobilise additional private financing – at the speed and scale necessary – to help mitigate climate change and build resilience to its impacts. Companies can compensate for their emissions, or contribute to global mitigation efforts, by buying and retiring carbon credits generated from projects that reduce or avoid carbon emissions.

The investment decision stems from Mizuho’s and CIX’s shared belief that carbon credits will play a crucial role in the decarbonisation of Japan; and reinforces Mizuho’s position as a leading institution in responsible financing. Furthermore, it reflects continued confidence in CIX’s vision to bring trust, quality, and increased accessibility to carbon markets through a suite of high-integrity solutions.

Masahiro Kihara, President & Group CEO, Mizuho Financial Group, said, “Mizuho supports customer’s efforts towards achieving a decarbonised society through financial and non-financial means. Carbon credits serve as a mechanism to provide funding for climate action projects and support the overall decarbonisation of society. In addition to contributing to decarbonisation efforts beyond value chains, there is an increasing importance in connecting technologies that achieve carbon removal from the atmosphere with investors to accelerate their implementation in society. Through this investment, we aim to provide our customers with reliable and high-quality carbon credits in partnership with CIX, and contribute to the expansion of the carbon credit market in Asia and beyond.”

Funding from Mizuho will be used to build out CIX’s existing platforms, deepen the company’s offerings for the Japanese market and ultimately expand its regional footprint. This will allow both companies to better serve customers in Japan and beyond, especially those in carbon-intensive sectors.

Mikkel Larsen, Chief Executive Officer of CIX, said, “CIX sees Japan as an increasingly progressive market for decarbonisation solutions, including the use of carbon credits. Having a strong partner in Mizuho will allow us to meaningfully serve customers in the market. Countries rarely have a perfect match in the demand and supply of carbon credits. Enhanced connectivity is therefore important. We recognise the challenges that many leaders and companies around the world face in decarbonising; and therefore the potential for international carbon credits to supplement their efforts.”

Bill Winters, Group Chief Executive, Standard Chartered and current Chair of the CIX Board of Directors, said, “Carbon markets are a critical piece of the net zero puzzle so it’s imperative that we work together to build a high-integrity carbon market underpinned by science, strong foundations, and trust. Standard Chartered is delighted to support Climate Impact X’s ongoing efforts to enhance the credibility of the market so we can collectively use every tool available to us to reduce and remove carbon from our atmosphere. On behalf of the CIX Board, we are pleased to have Mizuho join us as a partner in advancing our collective goal of scaling the market.”

The investment is subject to shareholder, corporate and regulatory approvals.

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