The Ministry of the Environment, in an effort to maintain creditability in the environmental effects of Green Loans and to reduce the borrower's costs and clerical load, has created the Green Loan Guidelines in March 2020 to increase Green Loans in Japan.

The Guidelines, in accordance with the GLP, which are widely accepted international Green Loan market, 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.

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 GuidelinesPDF