Tokyo, November 27 (BNA): Bank of Japan Deputy Governor Masayoshi Amamiya said Sunday that the central bank will conduct an annual survey of financial institutions and companies, looking for ways to boost the country’s growing climate finance market.
Reuters reported that an initial survey in August showed “strong demand” in Japan for “green” bonds and other environmental, social and governance (ESG) debt instruments.
Some respondents said they faced challenges in obtaining appropriate information and methods for assessing risks associated with climate change, he said.
“Climate change has a very significant impact on economic, price and financial developments in the medium to long term,” Amamiya said in a speech at an academic forum.
“Central banks can thus contribute to long-term macroeconomic stability by supporting private sector actions to deal with climate change.”
The Bank of Japan last year launched a financing scheme targeting activities aimed at combating climate change, as part of efforts to align itself with a global push towards a greener society.
Under the scheme, the central bank provides interest-free loans twice a year that can be extended until 2030 to banks that promote green and sustainable loans. It has lent 3.6 trillion yen ($26 billion) to 63 financial institutions under the scheme.
SM