AGL 5.50 Decreased By ▼ -0.10 (-1.79%)
ANL 8.62 Decreased By ▼ -0.28 (-3.15%)
AVN 75.84 Decreased By ▼ -1.14 (-1.48%)
BOP 5.18 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.51 Decreased By ▼ -0.14 (-3.01%)
EFERT 81.09 Decreased By ▼ -0.13 (-0.16%)
EPCL 49.94 Decreased By ▼ -0.09 (-0.18%)
FCCL 12.51 Decreased By ▼ -0.65 (-4.94%)
FFL 5.52 Decreased By ▼ -0.18 (-3.16%)
FLYNG 6.87 Decreased By ▼ -0.23 (-3.24%)
FNEL 4.63 Decreased By ▼ -0.13 (-2.73%)
GGGL 8.53 Decreased By ▼ -0.27 (-3.07%)
GGL 14.22 Decreased By ▼ -0.38 (-2.6%)
HUMNL 5.58 Decreased By ▼ -0.09 (-1.59%)
KEL 2.62 Decreased By ▼ -0.01 (-0.38%)
LOTCHEM 27.98 Decreased By ▼ -0.67 (-2.34%)
MLCF 23.68 Decreased By ▼ -1.01 (-4.09%)
OGDC 71.64 Decreased By ▼ -0.87 (-1.2%)
PAEL 15.33 Decreased By ▼ -0.04 (-0.26%)
PIBTL 4.87 Decreased By ▼ -0.11 (-2.21%)
PRL 15.80 Decreased By ▼ -0.40 (-2.47%)
SILK 1.04 Decreased By ▼ -0.03 (-2.8%)
TELE 8.92 Decreased By ▼ -0.28 (-3.04%)
TPL 7.04 Decreased By ▼ -0.21 (-2.9%)
TPLP 18.31 Decreased By ▼ -0.39 (-2.09%)
TREET 21.03 Decreased By ▼ -0.67 (-3.09%)
TRG 134.51 Decreased By ▼ -2.04 (-1.49%)
UNITY 16.57 Decreased By ▼ -0.45 (-2.64%)
WAVES 9.34 Decreased By ▼ -0.55 (-5.56%)
WTL 1.36 Decreased By ▼ -0.05 (-3.55%)
BR100 4,155 Decreased By -70.3 (-1.66%)
BR30 15,289 Decreased By -229.2 (-1.48%)
KSE100 41,613 Decreased By -537.4 (-1.28%)
KSE30 15,360 Decreased By -228.1 (-1.46%)
World

Japan PM Suga's carbon-neutral pledge to boost domestic green bond market, says govt panel member

  • The Bank of Japan can also promote green finance by setting ESG guidelines for its asset management, which would send a message to private banks that they should do so too, she said.
Published December 17, 2020
Follow us

TOKYO: Japan's burgeoning green bond market will keep growing next year as Prime Minister Yoshihide Suga's pledge to make the country carbon-neutral by 2050 boosts investor and issuer appetite, said Mana Nakazora, a member of a key government policy panel and chief credit analyst at BNP Paribas Japan.

Japan saw its market for green bonds - used to finance clean energy and environment projects - expand to 824 billion yen ($7.95 billion) last year, 24 times its size five years ago, environment ministry data showed. Globally the market has boomed with about $250 billion sold last year - 3.5% of the world's total bond issuance.

Nakazora said green bonds and other ESG (Environmental, Social and Governance) assets may eventually make up 20% of Japan's 60-trillion-yen corporate bond market. ESG has become big business for the investment industry with tailwinds coming from US President-elect Joe Biden's campaign pledge to make climate change a policy priority.

"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, who also oversees ESG investment in Japan.

"Achieving a carbon-neutral society would also require more funds," she told Reuters, speaking in an interview on Wednesday.

But she warned that Japan's government must set a clearer timetable on how to achieve its carbon-neutral target for companies to make a smooth transition towards a greener society.

The Bank of Japan can also promote green finance by setting ESG guidelines for its asset management, which would send a message to private banks that they should do so too, she said.

"Central banks across the globe are starting to change with some already managing assets under ESG guidelines," said Nakazora, who is currently a member of a finance ministry panel that discusses fiscal and economic policy.

"It's time for Japan's government, central bank and financial regulator to follow suit."

Comments

Comments are closed.

Japan PM Suga's carbon-neutral pledge to boost domestic green bond market, says govt panel member

Russia to provide crude oil to Pakistan at discounted rates: Musadik Malik

ECC approves wheat import of 450,000MT from Russia

Time to 'say no' to cartels, says PM, as energy bill touches $27bn

Rupee falls 0.1% against US dollar

Pakistan 'confident' perpetrators of Kabul attack will be brought to justice

KSE-100 falls 1.28% as uncertainty of IMF review persists

Oil up 3% on OPEC+ output plans and price cap on Russian crude

Taliban acting defence minister holds talks with UAE president

Brave England seal memorable victory over Pakistan

Security forces kill five terrorists in North Waziristan IBO: ISPR