Mizuho to Tighten Rules on Lending to Thermal Power Plants

Economy

Tokyo, May 22 (Jiji Press)--Mizuho Financial Group Inc. <8411> 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 the 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 CO2-cutting technology and economic efficiency.

From July, new loans will generally be granted only to thermal power plants that use so-called "ultra-supercritical pressure" to increase efficiency and reduce CO2 emissions, or use even more efficient systems.

Industry rival Sumitomo Mitsui Banking Corp. already applies the same standard to new loans to thermal power plants.

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Jiji Press