BOJ to conduct annual survey on local weather finance to nurture ESG market By Reuters

By Leika Kihara

TOKYO (Reuters) – Financial institution of Japan (BOJ) Deputy Governor Masayoshi Amamiya mentioned on Sunday the central financial institution will conduct a survey yearly of economic establishments and firms, searching for methods to nurture the nation’s rising local weather finance market.

An preliminary survey in August confirmed “robust demand” in Japan for “inexperienced” bonds and different environmental, social and governance (ESG) debt devices, Amamiya mentioned.

Some respondents mentioned they confronted challenges in acquiring info and acceptable strategies for assessing dangers related to local weather change, he mentioned.

“Local weather change has an especially huge impression on financial, worth and monetary developments within the medium- to long-term perspective,” Amamiya mentioned in a speech to an instructional discussion board.

“Central banks can due to this fact contribute to attaining macroeconomic stability in the long term by supporting private-sector strikes to cope with local weather change.”

The BOJ final yr rolled out a funding scheme focusing on actions geared toward combating local weather change, as a part of efforts to align itself with a worldwide push towards a greener society.

Beneath the scheme, the central financial institution provides zero-interest loans twice a yr that may be rolled over till 2030 to banks that increase inexperienced and sustainable loans. It has lent 3.6 trillion yen ($26 billion) to 63 monetary establishments underneath the scheme.

($1 = 139.1000 yen)