MUFG Bank invests in SDG Impact Japan

MUFG Bank and SDG Impact Japan have recently entered into a capital and business alliance. This strategic partnership is dedicated to fostering a wide range of sustainability-related business collaborations, including the creation and utilization of high-quality carbon credits, with the aim of achieving carbon neutrality in Japan and around the world.

In response to the pressing concerns of climate change, efforts are being made by countries and companies to rapidly reduce their greenhouse gas (GHG) emissions. Mitsubishi UFJ Financial Group, Inc. is committed to “supporting a smooth transition to a decarbonized society through our business” and “actively contributing to the realization of a sustainable society through a positive cycle between the environment and the economy,” and has been supporting GHG emissions reduction through engagement with our clients.

In this context, there are growing expectations for the use of high-quality carbon credits as a means of achieving carbon neutrality beyond a company’s own GHG emissions reduction efforts. In particular, with regard to the Joint Crediting Mechanism (JCM), the Japanese government has decided to utilize the JCM for the reduction target of NDC (nationally determined contribution), and has set a target of securing cumulatively 100 million t-CO2 of JCM credits by 2030. In this context, a new system, private-sector-led JCM, is also being designed to create JCM credits through active financial contributions by the private sector.

MUFG Bank will continue to support its clients’ GHG emission reductions and also expand its efforts to contribute to the creation and dissemination of carbon credits, for which there are growing expectations in Japan.

Through this partnership, MUFG Bank and SDG Impact Japan will work to expand the pipeline for the creation of JCM credits and to stimulate demand, and will further promote efforts to accelerate the transition to a sustainable society by making suggestions on the regulatory design of private-sector-led JCM. The two parties will also further promote efforts to accelerate the transition to a sustainable society by creating open innovation through linking MUFG Bank’s network of large Japanese corporations to SDG Impact Japan’s network of innovative sustainability and circular economy focused startup companies.

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