Mizuho Invests in Climate Impact X to Strengthen Carbon Credit Market in Asiaby Fintech News Singapore November 28, 2023
Japan’s Mizuho Financial Group has announced a strategic investment in Climate Impact X (CIX), a global carbon marketplace based in Singapore, in a move towards scaling the international carbon credit market in Asia.
The sum was not disclosed and the investment is subject to approval from shareholders, corporate governance, and regulatory bodies.
Mizuho’s investment will be used to expand CIX’s existing platforms and deepen its offerings in the Japanese market, with the potential to increase its presence across the region. This is expected to better serve customers in Japan and in other carbon-intensive sectors.
The strategic partnership via investment is primarily aimed at supporting the increasing demand for carbon credits among Japanese companies.
By investing in CIX, Mizuho intends to enhance the connectivity and internationalisation of carbon markets, facilitating more efficient cross-border trading.
Mizuho is now among CIX’s founding shareholders, which include DBS Bank, SGX Group, Standard Chartered, and GenZero, an investment platform focused on decarbonisation established by Temasek.
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.
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.”
Bill Winters, Group Chief Executive of Standard Chartered and Chair of the CIX Board, underlined the critical role of carbon markets in achieving net zero emissions. He welcomed Mizuho’s partnership as crucial in building a high-integrity carbon market.
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.”