„Follow-up Guidance on Transition Finance – Towards Better Dialogue with Fundraisers“

The FSA, the METI, and MoE in Japan are collaborating in the Study Group on Environmental Improvement for Effective Transition Finance and have jointly prepared a draft entitled Follow-up Guidance on Transition Finance – Towards Better Dialogue with Fundraisers (only available in Japanese).
The number of countries and regions announcing their carbon neutral goals has increased since the Paris Agreement in 2015. Japan has pledged to reduce greenhouse gases by 46% by 2030 and achieve carbon neutrality by 2050. Transition finance is an important financing method for companies in the industrial and energy conversion sectors to realize decarbonization.
Therefore, in order to enhance the dependability and efficiency of transition finance, the Study Group on Improving the Environment for Transition Finance determined that a key priority is to concentrate on the consistent implementation of transition strategies subsequent to the allocation of funds and to promote the advancement of corporate worth. Hence, the draft open for consultation aims to improve the credibility and effectiveness of transition finance and net-zero transition plans, as well as various initiatives and organizations related to sustainability and climate change.
The proposal has been presented for public consultation and is aimed at financial institutions and investors. The public can provide feedback until 26 May 2023, at 11:59 p.m. (JST) via the e-Gov interface.
The original press release, which is available only in available Japanese, can be found HERE.