Japan’s megabanks: no net-zero banking ambition

The report by Reclaim Finance criticizes Mizuho, MUFG, and SMBC for their continued role as major financiers of the coal industry. While the banks have introduced restrictions on project financing for new coal, the document asserts these are insufficient because the vast majority of financing occurs through corporate loans and underwritings. Between January 2019 and November 2021, these banks provided billions of dollars to coal developers, including entities like China Huaneng Group and Adani Group. The author concludes that the banks are lagging behind international peers and must adopt stricter corporate-level exclusion criteria to align with the Net-Zero Banking Alliance and IEA pathways.

• Mizuho, MUFG, and SMBC are among the largest global financiers of coal; between January 2019 and November 2021, they ranked second, fifth, and thirteenth globally in combined loans and underwritings, providing $57bn, $45bn, and $36bn respectively.
• The banks' policies to exclude project financing for new thermal coal mines and power plants are deemed insufficient because project-related financing accounts for only 5% of total fossil fuel financing, while 91% is provided to companies via corporate loans and underwritings.
• Between January 2019 and November 2021, the three banks provided significant funding to coal developers with expansion plans: Mizuho provided $31bn to 43 developers (including China Huaneng Group), MUFG provided $25bn to 39 developers (including Marubeni Corp), and SMBC provided $21bn to 38 developers (including Adani Group).
• The megabanks have not committed to a full phase-out of the coal sector, unlike 78 other financial institutions; they have only committed to zero exposure in project finance for coal power generation by 2040.

APA

Martin, L. (2022). Japan’s megabanks: no net-zero banking ambition. Reclaim Finance. https://reclaimfinance.org/site/en/2022/08/24/japans-megabanks-no-net-zero-banking-ambition/

Chicago

Martin, Léo. Japan’s megabanks: no net-zero banking ambition. Reclaim Finance, 2022. https://reclaimfinance.org/site/en/2022/08/24/japans-megabanks-no-net-zero-banking-ambition/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Japan’s megabanks: no net-zero banking ambition |publisher=Reclaim Finance |date=24 August 2022 |url=https://reclaimfinance.org/site/en/2022/08/24/japans-megabanks-no-net-zero-banking-ambition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2022japans, author = {Martin, Léo}, title = {{Japan’s megabanks: no net-zero banking ambition}}, publisher = {Reclaim Finance}, year = {2022}, month = aug, url = {https://reclaimfinance.org/site/en/2022/08/24/japans-megabanks-no-net-zero-banking-ambition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }