Japan: access to finance. File Image / Pixabay.
Japan is developing domestic guidelines to create the right environment for local financial entities funding energy transition projects in the run up to 2050.
Two government agencies, the trade and environment ministries, are drafting the guidelines which should be rready for official release in early next month, price reporting agency Argus Media reports.
Working groups will look at developing a more detailed transitional roadmap for each industry emitting heavy greenhouse gases, including steel, chemical, power, gas and shipping.
Heavy GHG-emitting manufacturers are expected to face difficulties getting hold of green financing instruments designed to finance carbon-neutral projects. However, these manufacturers can facilitate transitional loans and bonds when moving to greener operations, the report said.
Last month, shipping firm K Line last month signed the country's first transition finance agreement to partially fund the construction of the LNG-fuelled car carrier