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  5. Taskforce Formulating Roadmaps for Climate Transition Finance Established, Plus Call for Examples of Model Projects

Taskforce Formulating Roadmaps for Climate Transition Finance Established, Plus Call for Examples of Model Projects

June 4, 2021

The Ministry of Economy, Trade and Industry (METI) will set up a taskforce to formulate sector-specific roadmaps for the transition to decarbonization, with the aim of promoting climate transition financing. It will also start a project to create case examples of good practice by calling for examples of finance that conform to the Basic Guidelines and are deemed to have model qualities.

1. Background

On October 26, 2020 (Mon.), Prime Minister Suga declared the "goal of achieving a carbon-neutral, decarbonized society by 2050," and the government announced that it would mobilize all policy measures to fully support positive efforts by private companies that are undertaking bold investments and innovations. As part of these policies, METI worked jointly with the Ministry of the Environment (MOE) and the Financial Services Agency (FSA) and formulated the "Basic Guidelines on Climate Transition Finance" (hereinafter referred to as the "Basic Guidelines") on May 7, 2021 (Fri.).

In order to become carbon neutral by 2050, funding for "transitions" toward steady decarbonization (such as energy efficiency improvement and energy conversion) will be essential. The Basic Guidelines were presented to businesses, financial institutions, and other relevant parties in order to enable industry players to raise funds toward transitioning to decarbonization under the name "Transition Bonds/Loans."

In order to promote and spread awareness of transition finance, METI will set up a "Taskforce for Formulating Roadmaps for Promoting Transition Finance in the area of Economy and Industry" (hereinafter referred to as the "Roadmap Taskforce"). The purpose will be to formulate sector-specific roadmaps that can be used as a reference for formulating transition strategies and judging their suitability when considering transition finance.

METI will also start calling for model examples in order to create and publish examples of good transition practice.

2. Outline of the Roadmap Taskforce

(1) Purpose

To formulate sector-specific roadmaps that companies considering transition finance can use as a reference for formulating transition strategies and judging their suitability.

(2) Details of the roadmaps

Sector-specific technical roadmaps based on the concepts of Japan's goal of becoming carbon neutral by 2050 and on scientific grounds consistent with the Paris Agreement. The roadmaps will also be consistent with the Green Growth Strategy, Strategic Energy Plan, NDCs (greenhouse gas emission reduction targets based on the Paris Agreement), and other policy measures.

(3) Target sectors

Target sectors for FY2021 include steel, chemistry, electric power, gas, petroleum, cement and paper/pulp. (The list could be enlarged or altered.)

(4) Chair

Akimoto Keigo, Group Leader/Chief Researcher, Systems Analysis Group, Research Institute of Innovative Technology for the Earth (RITE)

(5) Schedule

The first meeting will be held in mid-June 2021, and the roadmaps will be formulated and published for each sector when they are ready. The roadmaps will be reported to the Taskforce on Preparation of the Environment for Effective Transition Finance, which is the body that formulated the Basic Guidelines.

3. Calling for examples for a transition finance model project

(1) Purpose

To publish examples that will provide a reference for transition finance, and reduce assessment costs

(2) Details

For examples of finance that conform to the Basic Guidelines, relevant information will be published regarding model examples whose conformity has been verified and that are deemed to have model qualities. In this project, an external reviewer will assess conformity, and METI will subsidize up to 90% of the costs of the external review and of preparing and providing written opinions, advice, etc.

(3) Application period

The application period will be from June 4 (Fri.), 2021 to January 14 (Fri.), 2022.

For more information on how to apply, please check the application guidelines.

If you have any questions, please contact the project's secretariat.

(Secretariat)

Nomura Research Institute, Ltd.

Contact for the Climate Transition Finance Model Project
E-mail: model-transition-r3-ext@nri.co.jpメールリンク
Phone: 070-8847-6551
(This address also includes the staff from Mizuho Research & Technologies, which is working as the joint secretariat.)

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Division in Charge

Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau

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