GenZero, Mizuho Join Forces to Drive Transition Credits for Coal Phase-Out in Asia

SINGAPORE / JAPAN, February 20, 2025 – Mizuho Bank, Ltd., a leading Japanese financial institution, has signed a Memorandum of Understanding (MoU) with GenZero, a Temasek-owned investment platform dedicated to accelerating global decarbonisation. The partnership aims to mobilise capital for transition credit projects, focusing on the early retirement of coal-fired power plants (CFPPs) across Asia.

CFPPs are the largest single source of carbon emissions worldwide, making their phase-out critical to achieving global climate goals. Transition credits, a innovative financial mechanism, are designed to incentivise the early shutdown of coal plants by monetising the emissions reductions achieved. These credits can be traded in carbon markets, providing plant operators with additional revenue to offset the costs of transitioning to cleaner energy sources.

The collaboration between Mizuho Bank and GenZero seeks to raise awareness of the role transition credits can play in accelerating the clean energy transition. The partnership will also strengthen ties between key stakeholders in Japan and Singapore, two nations at the forefront of Asia’s decarbonisation efforts.

Frederick Teo, CEO of GenZero, highlighted the significance of the alliance: “Japan’s technological expertise, commitment to climate goals, and active role in international cooperation make it a pivotal market for advancing Asia’s decarbonisation agenda. By combining Mizuho’s regional influence with GenZero’s expertise, we aim to unlock opportunities for coal-to-clean initiatives and drive greater adoption of transition credits. This partnership is a crucial step towards scaling decarbonisation efforts across the region.”

Shinichi Tsunoda, Executive Officer and General Manager of Mizuho Bank’s Sustainable Business Promotion Department, emphasised the challenges of transitioning away from coal, which remains a core energy source in Asia. “The question of who bears the transition costs and how they are shared is a significant hurdle. Transition credits offer a viable solution by ensuring fair evaluation and cost-sharing across regions, enabling a swift and economically viable shift away from coal-fired power. Partnering with GenZero, a leader in this field, marks a major milestone for Mizuho as we work towards a just and sustainable energy transition in Asia.”

The strategic alliance underscores the growing importance of innovative financial instruments in addressing the climate crisis. By leveraging their combined expertise, Mizuho Bank and GenZero aim to catalyse investments in transition credit projects, paving the way for a cleaner, more sustainable energy future in Asia and beyond.

This partnership comes at a critical time, as global efforts to meet net-zero targets intensify. Transition credits are increasingly seen as a vital tool to bridge the gap between current energy systems and a low-carbon future, particularly in regions heavily reliant on coal. With this collaboration, Mizuho and GenZero are positioning themselves as key players in the global push for decarbonisation.