Mitsubishi Heavy to borrow money using CO2 credits

TOKYO (AFP) – Mitsubishi Heavy Industries Ltd. plans to finance a Bulgarian wind farm by using the resulting greenhouse gas emission rights as collateral, the first such financing plan in the world, a report said Saturday.

The Japan Bank for International Cooperation and Mizuho Corporate Bank will extend a syndicated loan of 38 million euro (50 million dollars), the Japanese business daily Nikkei reported, without clarifying sources.

In the contract slated to be sealed Monday, future power sales generated by the project will also be used as collateral, it said.

The Kyoto Protocol, the first-ever international law on global warming, requires industrialised nations to slash emissions of greenhouse gas.

AFP