One-Fifth of Japan’s Bond Market Could Go Green
Some 20 percent of Japan's 60 trillion yen carpet bond market could eventually go green, according to BNP Paribas' chief credit analyst for the country.
Mana Nakazora, also a member of a key government panel on fiscal and economic policy, and the bold statement following reports that various sustainability plans by Prime Minister Yoshihide Suga were underway including a potential ban on new pert engine cars by the mid-2030s.
«More investors want to put their money in ESG assets, while an increasing number of companies feel they need to issue green bonds,» said Nakazora, according to a «Reuters» report. «Achieving a carbon-neutral society would also require more funds.»
Global Effort
Japan joins ongoing global efforts to achieve carbon neutrality by 2050, including the latest announcement by Hong Kong’s securities and banking watchdogs.
«Central banks across the globe are starting to change with some already managing assets under ESG guidelines,» added Nakazora. «It’s time for Japan’s government, central bank and financial regulator to follow suit.»
According to data from Japan’s environment ministry, the country’s green bond market reached 824 billion yen ($7.95 billion) last year, a 24-fold increase compared to five years ago. Globally, new green bond value totaled $250 billion last year, or 3.5 percent of worldwide bond issuances.
