Market Status (Domestic and Global)

Expectations for Issuance and Investment of Green Bonds in Japan

Issuance and investment of Green Bonds in Japan have been gradually increasing. In 2017, the total amount of issued bonds exceeded JPY200 billion, and the number of issuances reached 10. Although the number of issuances is increasing, compared with other countries, the scale and number of issuancesarelimited. In order to achieve the international agreements, namely “2°C target” and “SDGs”, following the trends both in and out of Japan and promotinge more private funds to green projects through Green Bonds are necessary.

Issuance of Green Bonds by Japanese Companies and Other Entities

An Illustration:Issuance of Green Bonds by Japanese Companies and Other Entities
  • As of June 2018
  • Exchange rates: USD1=JPY110, EUR1=JPY135, AUD1=JPY90
  • Source: Created by the Ministry of the Environment based on websites of the issuers

Overseas Market Status

Recently, with the global spread of ESG investment, Green Bonds have been rapidly spreading internationally. According to Climate Bonds Initiative (CBI), an international non-government organization in the UK, the amount of global Green Bond issuance was USD3.1 billion in 2012; however, in 2017, issuance grew to USD160.8 billion. In particular, issuance of Green Bonds in the Asian region is growing rapidly, and diversification of issuers is also progressing.

Global Trends of Green Bonds Issuance Amount

An Illustration:Global Trends of Green Bonds Issuance Amount
  • Source: Created by the Ministry of the Environment based on data on the CBI website

Monthly Issuance Amount in 2018

An Illustration:Monthly Global Green Bonds Issuance Amount in 2018
  • Source: Created by the Ministry of the Environment based on data on the CBI website

Green Bond Issuance by Reigion

An Illustration:Green Bond Issuance by Reigion
  • Source: Climate Bonds Initiative “Green Bonds Highlights 2016”

Green Bonds Issuance by Use of Proceeds (2016 and 2017)

An Illustration:Green Bonds Issuance by Use of Proceeds (2016 and 2017)
  • Source: Created by the Ministry of the Environment based on data including Climate Bonds Initiative “Green Bonds Highlights 2017”