Japan's Climate Transition Bond - Climate Bonds Initiative
Japan's Climate Transition Bond | Climate Bonds Initiative
A groundbreaking milestone in sustainable finance.
Posted Feb 13, 2024 by Leena Fatin
Japan is set to issue the first tranche of its ¥1.6 trillion (USD 11 billion)
Japan is set to issue the first tranche of its ¥1.6 trillion (USD 11 billion) Climate Transition Bond on the 15th and 28th of February. This is a briefing note on the Bond which is Certified under the Climate Bonds Standard, a world first.
This initiative is a cornerstone of Japan's Green Transformation (GX) programme, aiming to mobilise ¥150 trillion (USD 1 trillion) over the next decade in support of advanced sustainable technologies. These efforts align with Japan's commitment to achieving its 2030 greenhouse gas reduction targets and its vision for carbon neutrality by 2050.
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Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”