Climate Change: Policy
Policy
At MC, we believe that while climate change poses significant business risks, it also presents us with new business opportunities for innovation, disruption and growth. Accordingly, MC has set “Contributing to Decarbonized Societies” as one of its material issues as we strive to achieve sustainable growth.
In shifting to a decarbonized society, it is necessary to formulate specific policies that take into account the actual conditions (energy and power mix, geographical conditions and constraints, stage of economic development, population, etc.) that differ from country to country and region to region, and to steadily implement them one by one. Through our global network of offices and operating companies, we work with a wide range of stakeholders around the world each day in developing our business.
Progress to a Carbon Neutral Society
In October 2021, MC formulated itsRoadmap to a Carbon Neutral Society
in which we declared our goal of achieving net zero GHG emissions by 2050. As an active player in a variety of industries including resources and energy, we will fulfill our responsibility to provide a stable supply of energy while striving to achieve a carbon neutral society.
Roadmap: Three Core Points
- GHG Reduction Targets: Halve by FY2030, Net Zero by 2050
- Approx. 2 trillion yen of Energy Transformation (EX)-related investment by FY2030
- Integrated EX/DX initiatives to “Create a New Future”
Policy on Coal-fired Power Generation Businesses (IPP and EPC)
MC has established the following approach for its coal-fired power generation business, based on the GHG emission reduction targets announced in our roadmap.
Independent Power Producer (IPP) Business for Coal-fired Power Generation
- As of March 31. 2025, MC’s coal-fired power generation capacity (for businesses in which MC serves the role of Independent Power Producer, or “IPP”), including projects under development and construction, is approximately 78GW on an equity share basis (roughly 9% of MC’s total capacity as of the same date).
- MC has adopted a policy to reduce its equity share to approximately one-third by 2030 (compared to 2020 levels) by not entering into any new coal-fired power generation businesses, with the Vung Ang II project in Vietnam being the last, and to exit all existing coal-fired power generation projects by 2050. Furthermore, we will work to reduce CO₂ emissions in our thermal power generation business by taking steps such as converting to alternative fuel sources. We will subsequently aim to achieve a 100% non-fossil power generation portfolio by 2050 by 1) decarbonizing our thermal power generation business by switching to zero-emission thermal power and 2) further expanding our renewable energy business.
Engineering, Procurement and Construction (EPC) Business for Coal-fired Power Plants
- MC will not enter into any new EPC (Engineering, Procurement and Construction) businesses for coal-fired power plants, with the Quang Trach 1 project in Vietnam being the last. However, MC will continue to provide after-sales services for installed plants in cases such as when MC has a contractual obligation with the relevant power generation company, or when it is requested to do so by the power generation company or equipment manufacturer.
- Furthermore, MC will continue additional construction work and equipment replacement to reduce the environmental impact of existing coal-fired power plants, while assessing the effectiveness of such measures, as an initiative linked to the transition to a low-carbon/ decarbonized society.