Minutes Summary: 14th Transition Finance Study Group Meeting
Overview
At the Study Group on Creating an Environment for Transition Finance, the secretariat explained domestic and international trends in transition finance and the revision of the Basic Guidelines on Climate Transition Finance (closed session), and members shared their views. Topics included the SFDR transition category, subsidy programs, developments in ASEAN, and the role of finance in international frameworks such as AZEC.
Key points
- Members said the SFDR transition category could broaden investment opportunities.
- Members said subsidy programs can present good examples aligned with the Basic Guidelines and help applicant companies review and improve their strategies.
- A member asked that future materials also include developments in ASEAN.
- Members said finance has an important role in supporting the gradual transition of industry under international frameworks such as AZEC.
Overview
At the Study Group on Creating an Environment for Transition Finance, the secretariat explained domestic and international trends in transition finance and the revision of the Basic Guidelines on Climate Transition Finance (closed session), and members discussed them. Discussion of the latter item was closed to the public.
The meeting was held on August 21, 2026. At the opening, members were briefed on the study group's outline, operations, and participants.
Impact
A member said that subsidy programs can help applicant companies identify unclear parts of their strategies, check alignment with the Basic Guidelines with relevant business operators, and improve their strategies. The member also called for the programs to continue and for further dissemination of selected good examples.
Members said the SFDR transition category could broaden investment opportunities, while noting that it could not be welcomed without reservation because the rules include provisions such as excluding coal from the category.
A member said transition finance is becoming more important in international frameworks such as AZEC, and that finance has a major role in supporting a realistic, gradual transition for hard-to-abate industries.
Details
A member explained that ASEAN is an important market for Japanese companies and a region with established value chains. The member cited developments such as the expansion and mandatory adoption of sustainable finance and sustainability disclosures, as well as the introduction of taxonomies, and requested that future materials include these developments.
Regarding subsidy programs, a member said they provide an opportunity to examine how bond-issuing companies, loan borrowers, rating agencies, and others refer to and assess the Basic Guidelines. The member also said the programs are valuable for showcasing good examples of finance aligned with the Guidelines.