ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Climate Change

Green transition bonds surge in Japan, with $2bn issued this year

Idemitsu Kosan, JFE Holdings nab funding as investors embrace decarbonization

Nippon Yusen is using the money raised through transition bonds for ships powered by natural gas and other changes that will reduce the company's carbon emissions. (Photo courtesy of Nippon Yusen)

TOKYO -- Japanese companies have issued 285 billion yen ($2.12 billion) worth of transition bonds this year through July -- 14 times more than in all of 2021 -- as they tap a growing interest among investors in environmental, social and governance factors.

Transition bonds are issued by steelmakers, oil companies and other businesses that cannot achieve net-zero emissions quickly, helping them fund efforts to reduce their carbon footprints. Issuers must present specific emissions targets and decarbonization strategies to buyers.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more