Climate finance annual survey to nurture ESG market to be conducted by BOJ
It was announced on Sunday that Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya will conduct an annual survey on the performance of financial institutions and companies in order to find ways to nurture the rapidly growing global climate finance industry in the country.
According to the results of an initial survey conducted in August, there is “strong demand” in Japan for green bonds and other debt instruments related to the environment, social issues, and corporate governance.
Several respondents, including a few women, said they faced challenges in obtaining information and adapting methods to assess risks associated with climate change because of a lack of information.
Climate change impacts in the short and medium terms will have a significant effect on economic, price, and financial developments, Amamiya said at an academic forum.
As a result, central banks can, in the long run, contribute to macroeconomic stability by supporting efforts by the private sector to tackle climate change in an effort to keep the economy stable.”
As part of efforts to align itself with a global push towards a greener society, the BOJ released last year a funding scheme that focuses on activities aimed at combating climate change.
In order to boost green and sustainable lending, the Central Bank offers twice the interest-free loans to banks willing to support the initiative by rolling them over until 2030 twice a year, in an effort to encourage green lending. A total of 26 billion dollars is being invested in financial institutions under the scheme.
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