Japan Intends to Issue $157 Billion in Green Transition Bonds
Japan's prime minister, Fumio Kishida, recently announced a plan to issue "green transition" bonds worth an estimated 20 trillion yen ($157 billion) to help fund investments in a carbon-free society.
The action emphasises Tokyo's attempts to find alternate energy sources, particularly in Russia's invasion of Ukraine, highlighting the dangers that the country confronts due to its reliance on fuel imports.
"With Russia's invasion of Ukraine, Japan's energy security environment has altered tremendously," Kishida said in a meeting with experts to discuss Japan's clean energy strategy, emphasising the need to transition to a carbon-neutral society from one that relies on fossil fuels.
At the meeting, Kishida stated that Japan would require at least 150 trillion yen in private and public investment over the next decade to attain carbon neutrality.
According to him, the government will need to generate an estimated 20 trillion yen through green transition bonds.
Kishida said the government would also prepare a 10-year road map to boost green investment, including financial help and infrastructure development.
A government official stated that details of the green transition bonds, including the amount to be issued, will be considered at a panel later this year.