Mizuho Bank, a subsidiary of Mizuho Financial Group has signed a memorandum of understanding to establish a strategic partnership with KOKO Networks, a Kenya-based climate-tech company tackling deforestation and carbon emissions caused by the use of charcoal as cooking fuel in urban homes, in the field of carbon credits.
KOKO is set out to drive the uptake of clean energy by designing and launching a new technology-driven industry that can rapidly transition countries away from charcoal dependence.
The carbon emissions reduced by KOKO are audited in global compliance and voluntary carbon markets. Revenue from the sale of high-quality carbon credits is shared with Kenyan households, providing significant discounts on KOKO Fuel, making it affordable for low-income households.
Through this collaboration, Mizuho will offer its clients opportunities to obtain carbon credits. Companies seeking to protect forests and biodiversity through Net Zero commitments can purchase carbon credits from KOKO. Carbon credits allow companies in more developed economies to take immediate climate action as they work to decarbonise their own value chains over time, by channelling funds directly into emissions-reducing projects in emerging markets.
By signing this MOU, Mizuho aims to provide its clients with opportunities to obtain carbon credits through collaboration with KOKO, as well as new business opportunities for environmental contribution. In addition, ITOCHU Corporation has executed a long-term off-take agreement for carbon credits with KOKO to support the expansion of KOKO’s decarbonisation activities and to contribute to customers’ decarbonisation efforts through carbon credits acquired through the business. In the future, KOKO, Mizuho, and ITOCHU will continue to study the possibility of collaboration among the three companies for the development of the carbon credit market.
Through these collaborations with KOKO and IFC, Mizuho is playing a pioneering role in the nascent carbon credit market and is working to drive net-zero strategies for our clients and society as a whole.