Japan plans to issue climate transition bonds early next year -MOF - Reuters
Japan plans to issue climate transition bonds early next year -MOF | Reuters
Japan plans to issue climate transition bonds early next year -MOF
Pedestrians walk past the Finance Ministry building in Tokyo March 13, 2009. REUTERS/Toru Hanai/File Photo Acquire Licensing Rights
TOKYO, Nov 8 (Reuters) - Japan plans to issue climate transition bonds with a two-year tenor from around February next year, the Ministry of Finance said in a preliminary advisory on Wednesday.
The government will eventually offer the climate transition bonds in two, five, 10 and 20-year tenors with a fixed-coupon rate, the ministry said in the advisory. A final announcement on the details will be made in early December, it said.
Reporting by Leika Kihara; Editing by Christian Schmollinger
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Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”