The Ministry of the Environment, in an effort to enhance creditability in the environmental impact of Green Loans and to help improve borrowers’ sustainability through financing, first developed the Green Loan and Sustainability-Linked Loan Guidelines in March 2020PDF to increase Green Loans in Japan.

The Guidelines, in accordance with the Green Loan Principles and the Sustainability-Linked Loan Principles, which are widely accepted in international Sustainable Loan markets, provide borrowers, lenders, and other market participants with illustrative examples of specific approaches and interpretations which are tailored to Japan's loan market to aid with decision-making regarding Green Loans and Sustainability-Linked Loans.

At the same time, the Guidelines seek to prevent "green wash" loans (loans labeled as "green" despite having no environmental benefits or whose proceeds have not been appropriately allocated to Green Projects).

Green Loan and Sustainability-Linked Loan GuidelinesPDF