Mizuho Bank, Kubota Form Tie-Up for Greenhouse Gas Trading; Aims to Reduce Emissions

The Yomiuri Shimbun

14:36 JST, April 27, 2025

Mizuho Bank and major agricultural machinery maker Kubota Corp. have agreed to form a business tie-up to reduce greenhouse gas emissions and expand emissions trading.

Under the tie-up, Kubota will call on rice farmers to reduce emissions, and Mizuho Bank will sell the reduced amount as credits to its trading partners. The aim of the initiative is to accelerate emission cuts in the agricultural sector, which accounts for more than 10% of global greenhouse gas emissions.

The two companies will use the J-Credit system, under which the government certifies emission reductions by companies and other entities. First, Kubota intends to ask about 30,000 farming households, which have registered in the company’s relevant system, to lengthen a period of draining water from their paddies before ears of rice appear. According to the government, this method can suppress the action of bacteria in the soil and reduce methane emissions, a type of greenhouse gas, by up to 30%.

Kubota plans to apply to the government for certifying emission reductions through this initiative, and Mizuho Bank will sell the certified emission quotas as credits to business partners with commission fees added. The bank has business with about 80% of listed companies, among which steel, cement and electric power giants are envisaged to participate in the initiative. Farmers will receive payment from Kubota according to the amount of emission cuts.

The government plans to launch a full-fledged emission trading system next fiscal year, under which a cap on greenhouse gas emissions will be set for each company. If emissions exceed their respective limit, companies will have to purchase quotas from other entities. Given that, trading in emission quotas under the J-Credit system is expected to become more active.