ESG Market in Japan
2022.11.27 00:25
ESG Market in Japan
Budrigannews.com – Masayoshi Amamiya, Deputy Governor of the Bank of Japan (BOJ), stated on Sunday that the central bank will carry out an annual survey of businesses and financial institutions in an effort to foster the expanding climate finance market in the nation.
Amamiya stated that a preliminary survey conducted in August revealed “strong demand” for “green” bonds and other environmental, social, and governance (ESG) debt instruments in Japan.
He said that some respondents said it was hard for them to get information and the right methods for evaluating the risks from climate change.
“Environmental change immensely affects monetary, cost and monetary improvements in the medium-to long haul point of view,” Amamiya said in a discourse to a scholarly gathering.
“By supporting private-sector actions to deal with climate change, central banks can therefore contribute to achieving macroeconomic stability in the long run.”
As part of its efforts to join the global movement toward a greener society, the BOJ launched a funding program last year that focuses on activities that combat climate change.
The plan provides banks that increase green and sustainable loans with zero-interest loans twice a year that can be rolled over until 2030.Under the scheme, it has given loans to 63 financial institutions totaling 26 billion yen (3.6 trillion yen).
