Green Finance Portal
Expectations for Lending of Sustainability-Linked Loans in Japan
The first sustainability linked loan in Japan was executed in 2019. Sustainability linked loans have been increasing since the publication of the Sustainability Linked Loan Guidelines in March 2020.
Sustainability Linked Loan Amount in Japan
- As of July 9, 2025
- Exchange rates (2014~2023): USD1=JPY110, EUR1=JPY135, AUD1=JPY90
- Exchange rates (2024~): Converted into yen using the Bank of Japan's exchange rates for January of each year, which is used by the ministries in making their reports.
- The Bank of Japan's exchange rates: https://www.boj.or.jp/about/services/tame/tame_rate/syorei/index.htm
- Currency fluctuations affect the total amount of issuance.
- The table below shows the total issuance amount by currency.
| currency | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| billion JPY | 0 | 0 | 0 | 0 | 0 | 55 | 69.5 | 264.1 | 669.8 | 673.4 | 506 | 197.1 |
| billion USD | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.854 | 0 | 0 | 0 | 0 |
| billion EUR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| billion AUD | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- Source: Created by the Ministry of Environment based on the websites of funders, financial institutions, and third-party evaluation organizations.
- * This database is not screened by the Ministry of the Environment and is compiled based on the labeling declared by issuers and financial institutions.
- * In regards to the loan whose amount is undisclosed, only the number of deals is reported, not the origination amount.
- * Of the total amount and number of SLL deals in the domestic market, deals structured based on the “Sustainability-Linked Loan Framework” established by financial institutions as their policy for providing sustainability-linked loans to customers amounted to 271.3 billion yen and 1724 deals. Of these, deals that underwent third-party evaluation only for the comprehensive framework and did not obtain third-party evaluation for individual deals amounted to 81.3 billion yen and 706 deals. Cases structured based on the Sustainability-Linked Loan Framework established by local governments and other entities amount to 20.2 billion yen and 123 cases.
Global Market Status
The number of sustainability linked loans has been increasing in recent years, reflecting developments such as the global uptake of ESG investment.
Global Sustainability-Linked Loan Amount
- * The amount of sustainability-linked loans totals the value amount of loans labeled as such in the Environmental Finance database. Environmental Finance does not have its own screening criteria but rather aims to track and include all self-labelled loans. The conversion from other currencies to the USD is based on the exchange rate taken daily from Oanda at loan settlement date.
- Source: Created by the Ministry of Environment based on the Environmental Finance Database (data as of July 17, 2025)
Global Sustainability-Linked Loan Amount (by Region)
- * The amount of sustainability-linked loans totals the value amount of loans labeled as such in the Environmental Finance database. Environmental Finance does not have its own screening criteria but rather aims to track and include all self-labelled loans. The conversion from other currencies to the USD is based on the exchange rate taken daily from Oanda at loan settlement date.
- Source: Created by the Ministry of Environment based on the Environmental Finance Database (data as of July 17, 2025)