September 16, 2020
*Summary, full text and provisional schedule of the strategy (in English) were posted on October 8.
On September 11 (Fri.), 2020, the Ministry of Economy, Trade and Industry (METI) held the fifth meeting of the Study Group on Environmental Innovation Finance (chaired by Dr. Ito Kunio, Professor, Ph.D., Graduate School of Business Administration, Hitotsubashi University), and compiled the “Climate Innovation Finance Strategy 2020,” an interim report to convey Japan’s approaches to climate innovation finance to the rest of the world. Toward achievement of the Sustainable Development Goals (SDGs) and the goals set in the Paris Agreement, METI, through the strategy, will convey Japan’s message to the rest of the world, stating the importance of simultaneously advancing finance to each of three types of efforts for: [i] “transition” to steadily advance low carbonization and decarbonization, [ii] “green” to achieve decarbonization, e.g., renewable energy and [iii] “innovation”
Against the backdrop that global society, in particular, emerging countries in Asia and other regions, requires an enormous amount of investments to achieve decarbonization, the importance of the roles played by finance is growing for the purpose of not only promoting “green” investments (e.g., those in renewable energy), but also encouraging investment in companies committed to “transition” to a society which steadily advances low-carbonization and decarbonization or to “innovation” to dramatically decrease the emissions of carbon dioxide.
From these perspectives, METI inaugurated a Study Group on Environmental Innovation Finance on February 17, 2020, to hold discussions on measures for facilitating supply of funds to efforts for “transition” to steadily advance low-carbonization and decarbonization and those for “innovation” therefore. Since then, the study group has been advancing discussions.
2. Highlights of the interim report
The interim report presents basic approaches to achieving climate innovations: simultaneous promotion of “TGIF.”
“TGIF” is an acronym for “transition (T),” “green (G),” “innovation (I),” and “finance (F).” The report explains that it is indispensable for Japan to simultaneously promote these three prioritized fields of TGI to achieve the SDGs and the goals set in the Paris Agreement and also it is significant for it to finance (F) private and public funds to businesses in these fields.
It states that to these ends, Japan should develop “three bases”: [i] government’s commitment to address climate change, [ii] proactive disclosure of information by companies and [iii] engagement by suppliers of funds in climate innovation.
The report also presents future directions of the measures for the “three prioritized fields” and the “three bases” above, respectively.
3. Links to related information
- Climate Innovation Finance Strategy 2020 (summary) (PDF:300KB)
- Climate Innovation Finance Strategy 2020 (full text) (PDF:1,328KB)
- Climate Innovation Finance Strategy 2020 (provisional schedule) (PDF:334KB)
- The Study Group on Environmental Innovation Finance（in Japanese）
- TCFD Summit 2020 to be Held (September 1, 2020)
Division in Charge
Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau