LOADING

Type to search

Japan Issues World-First $11 Billion Climate Transition Bond

Japan Issues World-First $11 Billion Climate Transition Bond

Climate Transition Bond

World First: supports Japan’s ambitious emission reduction goals

Japan will issue the first tranche of its JPY1.6tn (USD11bn) Climate Transition Bond, with proceeds being used to fund Japan’s ambitious Green Transformation (GX) programme. 

The GX Plan promotes public and private investments of JPY150trn (USD 1trn) over the next 10 years in advanced, sustainable technologies that support national emissions reduction. It underscores Japan’s commitment to its 2030 greenhouse gas (GHG) reduction goals, and to its vision for carbon neutrality by 2050. 

The Bond is Certified under the Climate Bonds Standard, offering investors assurance on the environmental objectives of the use of the proceeds and signifying alignment with best practice global standards.

Sean Kidney, CEO, Climate Bonds Initiative, said:

Transition is the theme for the year: corporates, cities and countries need to do transition plans in line with global emission reduction targets; under the Paris Climate Agreement countries are working on ambitious new Nationally Determined Contributions (NDCs) – transition plans – to be tabled at next year’s COP.

This bond shows clearly how governments, and others, can raise funds to invest in that transition. It marks a significant milestone in transition finance.

55.5% of the proceeds of the bond are allocated to support for research and development (R&D) initiatives aligning with Japan’s efforts to limit temperature increase to 1.5°C, in areas ranging from renewable energy to hydrogen utilisation in steelmaking; 44.5% are for subsidies for activities ranging from the manufacturing of electricity storage batteries to energy-efficiency measures in buildings. 

The Bond strictly delineates its Use of Proceeds, excluding any allocation towards gas-fired power generation or operational activities involving ammonia co-firing in coal-fired plants.

Related Article: Japan, Denmark Partner on Floating Offshore Wind Power Technology

The bond’s independent verification report was prepared by Japan Credit Rating Agency (JCRA), a Climate Bonds Approved Verifier since 2019.

Atsuko Kajiwara, Managing Executive Officer, Head of Sustainable Finance Evaluation Group at JCRA, said:

Since 2020, JCR has been contributing to the government’s efforts to develop Japan’s transition pathway toward net zero by 2050 and alignment to the Paris Agreement. JCRA hopes the government’s strong initiative will help various Japanese corporates which struggle to find a way to attain both carbon neutrality and business expansion in the coming decades.”

Topics

Related Articles

LOADING

Type to search

Blog

Report: 80% of Corporations Recalibrate ESG Strategies in Response to Policy Shifts
Google Invests $4M in Smart Irrigation to Replenish Over 500M Gallons of Water in the Carolinas
Barclays Climate Ventures Mobilizes £508M in Climate Tech Investment Since 2020
Moeve to Supply 40,000 Tons of Marine Biofuel to Armas Trasmediterránea in Landmark Decarbonization Deal
Danske Bank Shifts to Company-Level Climate Transition Financing
IFRS Foundation Releases Q&A Guidance on GHG Emissions Disclosure Under IFRS S2
APG Commits €250M to SkyNRG to Scale Global Sustainable Aviation Fuel Production
OMV Commits to Building One of Europe’s Largest Green Hydrogen Plants
Meta, Microsoft Lock in Long-Term Carbon Credit Deals to Back High-Integrity Forestry Project
Hitachi Energy Powers One of China’s Largest Green Hydrogen Projects with Transformer Technology
SAP Launches New Sustainability Data Management and AI Solutions to Drive Business Performance
ACWA Power to Invest Up to $10B in Malaysia for Renewable Energy and Water Projects
Gresham House Secures $500M to Scale UK Forestry Investment and Carbon Sequestration
Watershed Opens Global Emissions Database to Drive Better Climate Decisions
Amprion Raises €1 Billion via Green Bond to Fund German Energy Transition
Solveo Energies Secures €98M from Mirova to Accelerate Renewable Energy Rollout
Neot Secures €350M to Expand Zero-Emission Leasing Across Europe
Tokio Marine Launches Green Insurance Unit, Targets $1B Revenue by 2030
RGE and TotalEnergies Partner to Build Solar and Battery Project in Indonesia
Microsoft Expands Climate Portfolio with 60,000 Soil Carbon Credits from Indigo Ag
EU Climate Progress Nears 2030 Targets, but Gaps Remain in Agriculture and Transport
Institutional Investors Double Down on ESG, Focus Shifts to Specific Themes, Says BNP Paribas Survey
Eni Enters Exclusive Talks with GIP for 49.99% Stake in Carbon Capture Division
EU Grants Carmakers 3-Year CO₂ Compliance Window Ahead of 2025 Targets
OroraTech Extends Series B to €37M with Backing from BNP Paribas and Rabo Ventures
Microsoft Commits to 622K Tons of Sublime Cement in Groundbreaking Clean Construction Deal
EU Watchdog Probes Commission Over Bypassing Consultation on Eased Sustainability Rules
Radisson Launches Manchester’s First Verified Net Zero Hotel, Setting Sustainability Benchmark
Schneider Electric Launches Agentic AI Ecosystem to Transform Sustainability and Energy Management
Snam has successfully placed a $2 billion multi-tranche USD-denominated Sustainability-Linked Bond (SLB), marking a historic first in sustainable finance: a Net Zero target across Scope 1, 2, and 3 GHG emissions.
Shanghai Futures and Energy Exchanges Become First in China to Join UN Sustainable Stock Exchanges Initiative
La Banque Postale Rolls Out ESG-Tiered Savings Products to Accelerate Responsible Investment
Microsoft and Carbon Direct Launch High-Integrity Standards for Low-Carbon Concrete and Steel Certificates
Meta Secures 650 MW of Solar Power Through Long-Term PPAs with AES
EPA Moves to Eliminate Federal Greenhouse Gas Limits on Fossil Fuel Power Plants
Japan Launches Offshore Blue Carbon Research to Scale Marine CO₂ Capture
Schneider Electric Launches Low-Carbon Building Program, Cutting Emissions by 572 Tons in Dubai
EBA Proposes Streamlined ESG Disclosure Rules to Ease Compliance Burden on Banks
Gprnt Launches World’s First Nationwide ESG Utility, Backed by Ant International and MUFG
DHL’s Scania-Built E-Truck Cuts CO2 Emissions by 90% in 100-Day Pilot
Green Project and Achilles Join Forces to Tackle Scope 3 Emissions with Data-Driven Solutions
EU Eases Carbon Border Tariff Rules, Exempting 90% of Importers
EU Assigns CO₂ Storage Quotas to Oil & Gas Producers to Meet 2030 Net-Zero Targets
FedEx Secures 3M Gallons of SAF from Neste to Cut Emissions at LAX
Microsoft Commits to 1.24M Tonnes of Carbon Removals in Largest-Ever Biochar Deal with Exomad Green
PepsiCo Expands Regenerative Agriculture and Sharpens Climate, Water, and Packaging Targets
TotalEnergies Launches Largest European Solar Cluster in Spain
ArcelorMittal Confirms €1.2B Dunkirk Investment to Restart Decarbonization Drive in France
Aramco Deploys World-First Iron-Vanadium Flow Battery to Power Gas Wells
Datamaran Analyzes 300+ CSRD Reports to Reveal Top Sustainability Risks and Priorities
Lululemon Appoints Former Nike CSO Noel Kinder to Drive Global Sustainability Strategy
EU Awards €992M to 15 Projects to Accelerate Renewable Hydrogen Production
Lloyds, OFI, and North East Mayor Unite to Unlock Green Investment in UK Energy Hub
EIF and BNP Paribas Unlock €200M to Finance Green Leasing for SMEs Across Four EU Countries
re.green Secures USD $16 million from Brazil’s Climate Fund
JPMorganChase to Buy 450,000 Tons of CO₂ Removals from CO280 in $90M Deal
Microsoft Secures Long-Term Carbon Credit Deal with Climate Asset Management’s U.S. Forestry Project
Singapore Launches Guidebook for Sustainability Reporting Training Providers
Novisto Raises $27M to Expand ESG Reporting Platform Amid Surging European Demand
Google to Source Over 600 MW of New Solar Energy from energyRe Projects in South Carolina
EU and UK to Link Carbon Markets, Creating Unified Emissions Trading System
Blackstone to Acquire TXNM Energy for $11.5B
Occidental and ADNOC’s XRG Explore $500M DAC Facility in South Texas
Morningstar DBRS Clarifies ESG Criteria Without Impacting Credit Ratings
BlackRock’s New ESG Utilities ETF Targets 30% Emissions Cut
Philips Secures €1B in Oversubscribed Green Bond Offering to Refinance Debt and Fund Sustainable Projects
ReNew Commits $2.5B to Build One of India’s Largest Hybrid Renewable Projects
J.P. Morgan Funds Mati Carbon to Scale Enhanced Rock Weathering Across India and Africa
EU Moves to Ease CBAM Rules for SMEs While Keeping 99% of Emissions Covered
Schneider Electric Launches Agentic AI Ecosystem to Transform Sustainability and Energy Management
Valeo Raises €650 Million with New Green Bond to Fund Low-Carbon Mobility Projects
Ares in Exclusive Talks to Buy $2.2 Billion Stake in Eni’s Clean Energy and EV Business Plenitude
Glimpact Launches Free Global Impact Score Tool to Help Fashion Brands Meet EU Eco-Design Rules
Blackstone Sustainability Leader Jean Rogers Joins Pegasus to Scale Climate Investments in Global South
Microsoft Signs Deal with Rubicon Carbon for 18 Million Tonnes of Nature-Based Carbon Removal Credits
ICBC to Issue Multi-Currency Green Bond to Support China’s Carbon Neutrality Goals
AXA IM Adopts SDR ‘Sustainability Improver’ Labels for Carbon Transition Fixed Income Funds
Climeworks’ New DAC Technology Doubles CO₂ Capture in Real-World Tests with Svante
More than 1 in 4 Cars Sold Worldwide in 2025 Set to Be Electric IEA Report
Octopus Energy Launches £165 Million Clean Energy Fund with SDR 'Sustainable Focus' Label
Datamaran Launches Harbor, a New Global Platform to Connect Corporate Sustainability Professionals
Actis Raises $1.7B for Infrastructure Fund Focused on Clean Energy, Digital Growth Markets
STACK Secures $1.4B Green Financing Backed by North American Data Centers
Global Banking Regulators to Publish Climate Risk Disclosure Framework Despite U.S. Regulatory Retreat
Aligned Climate Capital Closes $240 Million Solar Fund, Its Largest to Date
EVision to build Latin America's first net-zero industrial park in Brazil to accelerate green fuel production
Maersk, LEGO First to Source e-Methanol from World’s First Commercial-Scale Plant
Google Launches AI for Energy Accelerator in Europe & Israel to Drive Clean Energy Innovation
Air New Zealand Announces New Emissions Targets After Withdrawing from SBTi
New York Launches $1 Billion Climate Plan in FY26 Budget to Cut Emissions, Create Green Jobs
German Chancellor Pushes EU to Scrap Corporate Sustainability Due Diligence Law
Fastmarkets Launches Carbon Intelligence Suite to Help Industries Navigate CBAM
IFC Commits $100M to Element Fleet to Accelerate EV Rollout in Mexico
JP Morgan Appoints Kai-Christian Nerger as Head of Green Economy Banking for Europe
ICE Launches Global Climate Risk Tool Covering 1.6 Billion Buildings and 20,000 Corporates
AIIB and NIB Partner to Expand Sustainable Infrastructure Financing
","session_id":"ep-sess-1760991480-Aes0eqDM","page_url":"https:\/\/esgnews.com\/japan-issues-world-first-11-billion-climate-transition-bond\/","post_id":"25517","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */