The Ministry of Environment has announced important policy developments for 2025 regarding subsidy system information for promoting green finance. This system aims to promote decarbonization investment by private businesses and expand sustainable finance, strengthening financial support toward Japan"s 2050 carbon neutrality goal. Key objectives include expanding ESG investment, promoting green bond and sustainability bond issuance, and improving decarbonization lending and investment capabilities of private financial institutions.
This subsidy system provides a comprehensive framework enabling participation by diverse stakeholders including financial institutions, corporations, and local governments, aiming to enhance Japan"s sustainable finance market competitiveness through green finance market expansion. Particularly noteworthy is the promotion of regional financial institution participation to simultaneously achieve decarbonization and economic revitalization of local economies.
Eligible subsidy projects include green finance product development, ESG evaluation and analysis capability improvement, decarbonization investment and lending criteria establishment, climate change risk assessment system construction, and regional decarbonization project finance arrangement, contributing to sustainability improvement across the financial industry. International green taxonomy alignment and information disclosure support based on TCFD (Task Force on Climate-related Financial Disclosures) recommendations are also positioned as crucial elements.
This policy coordinates with Financial Services Agency financial policies and Ministry of Economy, Trade and Industry industrial policies to achieve government-wide decarbonization financial policy promotion. Particularly through SME decarbonization support, renewable energy project funding expansion, and circular economy transition support, it provides financial backing for Japan"s overall Green Transformation (GX).
Internationally, while coordinating with EU sustainable finance policies and U.S. climate change investment measures, it aims to establish Japan"s position as an Asia-Pacific green finance hub. Through this subsidy system, acceleration of private capital guidance toward decarbonization investment is expected, enabling both Japan"s greenhouse gas reduction target achievement and sustainable economic growth compatibility.