Green Finance State of the Market – 2020 JAPAN

The Japanese green bond market grew by a third in 2020, reaching a cumulative issuance of USD 26.15 billion. Issuance is led by financial corporates and government-backed entities, with proceeds primarily allocated to buildings, transport, and energy. The report highlights a strong record of external reviews and post-issuance reporting, while identifying significant opportunities to scale up the market through the refinancing of unlabelled climate-aligned debt, particularly in the transport sector. Additionally, it outlines Japan's policy shift toward net-zero emissions by 2050 and the resulting development of green growth strategies and ESG disclosure frameworks.

• Japan's green bond market experienced growth in 2020, with cumulative issuance reaching USD 26.15 billion (ranking 9th globally) and 2020 issuance totaling USD 10.6 billion (ranking 7th globally).
• In 2020, financial corporates and government-backed entities were the primary drivers of issuance, holding market shares of 32% (USD 3.4bn) and 29% (USD 3bn) respectively, followed by non-financial corporates at 26% (USD 2.8bn).
• Buildings, transport, and energy are the dominant sectors for green bond proceeds. Cumulatively, buildings lead at 35%, while 2020 allocations were split between buildings (36%), transport (32%), and energy (23%).
• External reviews are prevalent in the Japanese market, with 86% of issuance having an external review. This includes 50% of cumulative deals by volume having a Second Party Opinion (SPO) and 12% having Certification under the Climate Bonds Standard.
• There is a significant opportunity to expand the labelled green bond market by refinancing unlabelled climate-aligned debt. Approximately USD 3.6 billion of this debt will mature by 2024, with an additional USD 3.4 billion maturing by 2029.
• Transport is the most significant climate-aligned theme in Japan, with outstanding unlabelled climate-aligned debt totaling USD 13.3 billion, of which the transport sector accounts for 87%.
• Japan has committed to achieving net-zero emissions by 2050, supported by a Green Growth Strategy from the Ministry of Economy, Trade and Industry (METI) that targets 14 priority areas, including offshore wind power and hydrogen development.

APA

Giorgi, A., & Michetti, C. (2021). Green Finance State of the Market – 2020 JAPAN. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2020.pdf

Chicago

Giorgi, Amanda, and Carlotta Michetti. Green Finance State of the Market – 2020 JAPAN. Climate Bonds Initiative, 2021. https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2020.pdf.

Wikipedia

{{cite report |last1=Giorgi |first1=Amanda |last2=Michetti |first2=Carlotta |title=Green Finance State of the Market – 2020 JAPAN |publisher=Climate Bonds Initiative |date=March 2021 |url=https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{giorgi2021green, author = {Giorgi, Amanda and Michetti, Carlotta}, title = {{Green Finance State of the Market – 2020 JAPAN}}, institution = {Climate Bonds Initiative}, year = {2021}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Japan-Green-Finance-State-of-the-Market-2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }