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 November 1, 2024
- 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| billion JPY | 0 | 0 | 0 | 0 | 0 | 55 | 69.5 | 264.1 | 669.8 | 671 | 428.9 |
| billion USD | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.854 | 0 | 0 | 0 |
| billion EUR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| billion AUD | 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.
- For loans with undisclosed amounts, only the number of issues is reported, not the amount. Of the amount and number of issues in the domestic SLL market, 242.9 billion yen and 1235 issues were originated based on the “Sustainability-Linked Loan Framework,” which was established by financial institutions as a policy for providing sustainability-linked loans to their clients. Of these, 127.1 billion yen and 523 issues were evaluated by a third party only for the framework, but not for the individual loans.
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 October 21, 2024)
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 October 21, 2024)