The paper “Japan Policies To Grow Credible Transition Finance” has been prepared by the Climate Bonds Initiative. It presents an overview of Japan’s climate change and transition policy landscape, with particular attention given to the recently cabinet-approved GX Plan. The paper then highlights priority areas that should be strengthened while focusing on guidance to the private sector and on transition finance.
The Japanese government has set ambitious targets for decarbonisation and transformation of the country. To support this, sustainable finance is needed to facilitate investments across all sectors of the economy. The required transformation is dependent on the work of industry and corporate entities. To meet the need for rapid transition, companies will need to develop their own science-based, coherent, and transparent plans to guide the process.
The Climate Bonds Initiative welcomes the GX Plan as a solid foundation on which to build the transition needed to deliver on national commitments to cut Greenhouse Gas emissions. The GX Plan will drive forward investment in renewables, grid flexibility, energy efficiency and circular economy, supported by an upcoming sovereign bond to stimulate private sector investment.
Access the paper here