Sustainable finance in Japan - statistics & facts
In 2024, Japan became the first sovereign issuer of climate transition bonds, taking on a leading role in transition financing globally. To finance the green transformation (GX) of carbon-intensive industries, the government plans to raise a substantial amount of capital in the coming decade. Transition bonds are a relatively new type of financing method used to fund the decarbonization efforts of companies that are not yet green. In October 2020, Japan declared its commitment to achieve carbon neutrality by 2050. The also pledged to cut its greenhouse gas emissions by 46 percent by 2030 compared to fiscal year 2013 levels. In light of the nation’s ambitious goal, sustainable investment has seen significant growth in the past years.
