- It is necessary to register every fiscal year. In the case of a continued registration, the review will cover changes from the previous fiscal year only.
- No registration or other fees are incurred for the registration process.
- It is possible to register together as an issuance supporter under one name. Please decide the managing firm and have the representative apply. In that case, the application for subsidies and other procedures will likewise be under one name, and the representative of the managing firm shall take care of the process.
- It is possible for a foreign company to register if that foreign company has an office in Japan, such as a Japanese subsidiary or branch office, or if there is a presence such as a service desk within a business partner’s location in Japan.
- When a registered issuance supporter carries out the main duties and consigns part of its work, there is no need for the specialized company to register.
- If an issuance support plan for multiple fiscal years was prepared in the first year and it received a decision to be granted a subsidy, it is unnecessary to apply again the following year onwards. However, an application to receive the subsidy must be made every fiscal year for issuance support work for that year, and it is necessary to obtain a decision to receive the subsidy.
- Any registered issuance supporter who might have a chance to provide issuance support can apply for subsidies even if their standing as an issuance supporter is still not finalized, such as when bidding has not yet taken place. Those who enter into a contract with the issuer after the bidding, etc., are to apply for a subsidy payment after the contract, and those who do not reach the contract stage are to promptly withdraw their applications. Please be aware that it is necessary to make an application before entering into a contract with the issuer. If other issuance supporters for the same issuance support plan are still undecided, the issuance supporter that is already fixed can make the application on behalf of those that are undecided.
- As long as it promotes the spread of ESG bonds, including Green Bonds, it is not a problem. Even if the statement is based on a group company, as long as it refers to efforts as a group, there is no issue.
- For changes to the subsidy application amount and contract concerning the projects, etc. please make those change applications promptly. For other minor changes, please do so either after issuance or with the performance report after completion at the end of the fiscal year.
- The period to be covered will be up to three fiscal years, including the year that the decision for the first issuance support was determined.
When undergoing issuance support for multiple fiscal years, it is necessary to prepare an issuance support plan for all of the years within the subsidy period, and then to apply and obtain a decision every fiscal year to receive the subsidy. Please note that this project is based on a single-year budget, and a budget for the next fiscal year and onwards is not guaranteed.
- Since this financial programme is aimed at promoting the issuance of Green Bonds, if the subsidy is received and the issuance support is given, then, the Green Bond does actually need to be issued.
However, so that it can be determined flexibly based on market conditions, issuance can take place within 3 years from the end of the fiscal year of the last year in which the subsidy was received. If it is not issued even after 3 years, it will be subject to a request for the subsidy refund.
- There is no problem in concluding contracts for multiple fiscal years in the first year. However, if the issuance support extends over multiple fiscal years, it is necessary to apply and to obtain a decision every year to receive subsidy payment before start of issuance support work. Actual performance must be reported after the work and, then, procedure must be followed for subsidy amount to be fixed and provided (based on the actual cost incurred).
- Please consult with the registered issuance supporter.
- If the Green Bond to be supported is a public offering bond, it is essential that the registered issuance supporter of the Green Bond structuring division participate or plan to participate in the development of issuance support plan.
For a Green Bond to be supported that is not a public offering bond, although we recommend the participation of the registered issuance supporter of the Green Bond structuring division in the issuance support plan, it is not required.
- It is possible for another registered issuance supporter of the same issuance support plan to become a substitute for the proceedings of the subsidy application. A registered issuance supporter of the Green Bond structuring division can also become a proxy for the procedure. In these cases, please ensure the proxy handles any inquiries from the subsidy business operator concerning application documents, etc. If the same corporation or the same group company becomes a proxy for more than one project, please set up a person in charge (leader) within the corporation or group to be a general contact point for the subsidy business operator. In principle, a change in proxy is not allowed.
- This subsidy will not be granted for the arrangement fee paid to the structuring agent by the issuer.
- Issuance support work may be started from the date the decision for subsidy payment is received. In addition, because the subsidy payment needs to be settled, please complete issuance support work by early March.
If issuance support for one Green Bond extends over several fiscal years, commencement of issuance support work for the next fiscal year out of the multi-year plan will be after the subsidy payment decision is received; however, in the case where it is necessary to start issuance support work at a time that is prior to the day before receiving the subsidy payment decision for the next fiscal year (for example, when it is necessary to start operations from April 1), an application form for project implementation commencement approval for the following fiscal year shall be submitted to the subsidy business operator. By receiving this approval, it is possible to start the project before receiving the subsidy payment decision for the following fiscal year.
- A format is not particularly specified; however, please clearly state that when a subsidy payment is received, the amount equivalent to subsidy payment will be used for the costs related to the relevant issuance support work.
In addition, with regard to the contract for issuance support work related to the external review, so that neutrality will not be compromised, please ensure the contract stipulates that expenses for issuance support work will be paid by the issuer regardless of the results of the external review.
- For external reviews serving to provide information to investors, the criteria with which to conform may be chosen based on the issuing market and the investor group. In that case, since it is difficult to ultimately confirm the suitability of external standards, it will be necessary to report to the subsidy business operator the compatibility to the Green Bond Guidelines to confirm whether or not they meet the subsidy eligibility requirements.
- Any of the above mentioned are acceptable. We are not recommending or requiring any specific methods and formats with regard to external reviews.
- Such consulting that is included in support for developing the Green Bond issuance framework. For example, consulting may involve providing information and quantifying the effect of environmental improvement of use of proceeds’ green projects , providing knowledge regarding negative effects that can be brought on by the project and relevant countermeasures, as well as providing quantification of the negative effects, support in developing environmental targets for Green Bond issuance based on the issuers’ ESG strategy, etc. selection and evaluation criteria for a project to meet its goal, and supporting the designing of selection and evaluation process, etc.
On the other hand, consulting that cannot be said to support framework development, such as support in order for the Green Bond to become listed on the stock exchange or consulting on the green project itself which would be use of funds, are not eligible.
The situation may differ case by case, therefore, if you have any questions, please contact the subsidy business operator at any time.
- This subsidy will not be provided to support the issuance and structuring of sustainability bonds, social bonds, and green loans.
- Please refer to the table below.
Differences between Pilot Project for Green Bond Issuance and the Financial Support Programme for Green Bond Issuance Item Financial Support Programme for Green Bond Issuance Pilot Project for Green Bond Issuance Application and Applicant Registered issuance supporter (external review organization / consulting firm) Issuer Support Grant subsidy for actual expenses incurred for the additional cost of issuing green bonds (external review / consulting expenses).
Select issuance plan and pilot projects from among applications.
After confirming compliance with guidelines, the Ministry of the Environment is to disseminate information (no subsidy provision).
Criteria for Green Bonds Includes domestic decarbonization-related projects above a certain level None Number of cases to support Within a subsidy amount of JPY680 million Up to several cases Support period Up to 3 years Single-year When using both projects Acceptable to use support after issuance Applying together with the use of the issuance support subsidy program is not acceptable
- Please refer to The GHG Impact Quantification Guidebook.
In addition, it is possible to make the calculations on one’s own, and reports on the CO2 emission reduction effects can be replaced by reporting or other submission that describes the reduction effects.
- In cases where projects other than Green Projects are included in the use of proceeds, its bond does not considered as Green Bonds in the first place. Therefore, issuance support for such bonds are not eligible for subsidy payment.
For example, that if 50% or more of the proceeds, or the number of projects for which the proceeds are used are allocated to low carbonization projects in Japan, the bond is eligible for subsidy payment even if the other proceeds are allocated to Green Projects that have no decarbonization effects, such as projects for biodiversity or projects for pollution prevention and control. In other words, the Green Bonds issued to raise funds for Green Projects, which also satisfy the specified eligibilities are eligible for subsidy payment.
- The standard period required is specified as 30 days, but in practice, it is subject to change depending on whether or not each application form is complete or the characteristics of each project, etc. Assuming that the standard period required until the authorization regarding receiving subsidy payment may cause a particular project to fall behind the schedule of the issuer, please consult with the subsidy business operator ahead of time.