Mizuho Financial Group Inc. will suspend all new loans for coal-fired thermal power plants, which emit large amounts of carbon dioxide, starting this fiscal year. Mizuho plans to reduce outstanding loans to zero by fiscal 2050, taking the strictest stance among Japan's three megabanks over financing for such plants. With little progress being made in the restart of nuclear power plants, the Mizuho's move may affect Japan's energy policy.
So far, Mizuho has extended new loans only to operators of highly efficient coal-fired thermal power plants that emit relatively little carbon dioxide, but the financial institution is no longer making exceptions.
Mizuho's outstanding loans for coal-fired thermal power plants totaled about 300 billion yen as of the end of fiscal 2019. Mizuho also plans to cut loans for rebuilding existing coal-fired thermal power plants, halving the outstanding balances by fiscal 2030 and reducing them to zero by fiscal 2050.
By fiscal 2030, Mizuho will make investments and loans worth about 12 trillion yen in the environmental sector, including renewable energy, to help companies reduce carbon emissions.
Due to growing interest in climate change, loans for coal-fired thermal power generation are being looked at critically both at home and abroad. In March, an environmental non-profit organization in Kyoto pointed out that Mizuho faces enormous risk because it has extended many loans for coal-fired power.
Against this backdrop, major domestic banks have gradually tightened their stance on financing coal-fired thermal power plants. The government's basic energy plan positions nuclear power and coal-fired thermal power as its main sources of energy. Nuclear reactors have not been reactivated due to stricter safety standards. If it becomes difficult to construct or rebuild coal-fired thermal power plants, the government may have to review its energy strategy.
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