Japan – Green finance state of the market 2019

Japan's green bond market saw record growth in 2019, with issuance increasing by 70% over 2018 to JPY786.7bn. Financial corporates dominate the market, and proceeds are primarily allocated to buildings, energy, and transport. The market is characterized by a high rate of external reviews, predominantly Second Party Opinions from Sustainalytics. The Ministry of the Environment (MOEJ) supports the market through guidelines, information platforms, and a financial subsidy programme for external review costs.

• Japan experienced record green bond issuance in 2019, reaching JPY786.7bn, which represents a 70% increase compared to the JPY464.4bn issued in 2018.
• Financial corporates are the primary drivers of the market, accounting for 50% of cumulative issuance (JPY938.8bn), followed by non-financial corporates at 21% (JPY397.7bn).
• The allocation of proceeds is dominated by buildings (38%), energy (29%), and transport (25%). The Tokyo Metropolitan Government is noted as the first issuer to allocate funds toward adaptation and resilience, specifically JPY 13.5 bn for flood prevention.
• External reviews are highly prevalent in the Japanese market, with 90% of issuance receiving such reviews. Second Party Opinions (SPOs) are the most common, used in 60% of deals by volume, with Sustainalytics serving as the leading provider (86% of volume).
• JPY-denominated deals are the most common, representing 53% of total cumulative issuance and 88% of total issuance in 2019. The Euro (EUR) is the second most popular currency.
• The Ministry of the Environment (MOEJ) has implemented several policy measures to support the market, including the 2017 Green Bond Guidelines (revised in March 2020), the Green Finance Portal, and a Financial Support Programme providing grants up to JPY50m per issuance for external review and consultation expenses.

APA

Giorgi, A. (2020). Japan – Green finance state of the market 2019. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2019.pdf

Chicago

Giorgi, Amanda. Japan – Green finance state of the market 2019. Climate Bonds Initiative, 2020. https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2019.pdf.

Wikipedia

{{cite report |last1=Giorgi |first1=Amanda |title=Japan – Green finance state of the market 2019 |publisher=Climate Bonds Initiative |date=March 2020 |url=https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2019.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{giorgi2020japan, author = {Giorgi, Amanda}, title = {{Japan – Green finance state of the market 2019}}, institution = {Climate Bonds Initiative}, year = {2020}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2019.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }