Japan is breaking new ground with its climate transition bonds

Debt to be repaid using revenues from emissions trading system

20240209 solar fuji

A solar power facility in Kanagawa prefecture: Japan plans to start a debut sale of 1.6 trillion yen of climate transition bonds this week. © Reuters

Yi Chen is senior program officer for climate projects at the Asia Society Policy Institute. Alistair Ritchie is the organization's director of Asia-Pacific sustainability.

Japan plans to issue 20 trillion yen ($135 billion) of climate transition bonds over the next 10 years in a transformative move to support upfront investment in the green transition of its power and industrial sectors and to catalyze private investment in low-carbon technologies such as green hydrogen.

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