In 2025, Japan made significant strides in advancing its sustainable finance agenda, focusing on consolidating progress and accelerating action. The Climate Bonds Japan Team played a pivotal role in strengthening the market, supporting new climate policies, and aligning national goals with international best practices through collaboration with local partners. Japan’s leadership across the Asia Pacific region became increasingly evident, demonstrating commitment to climate action through policy innovation, market development, and large-scale capital mobilisation.
The year began with clear signals of Japan’s Green Transformation (GX) ambitions. Climate Bonds CEO Sean Kidney joined the advisory committee of Japan’s GX Acceleration Agency, a key component of the government’s strategy to mobilise over JPY 150 trillion in green investment over the next decade. To support this effort, Climate Bonds appointed two advisors with extensive expertise in global finance, ESG integration, and climate strategy, further reinforcing Japan’s leadership in sustainable finance.
Partnerships were central to Japan’s 2025 achievements. Climate Bonds renewed its collaboration with the Institute for Global Environmental Strategies (IGES) to enhance capacity building, knowledge sharing, and market development. At COP30 in Belem, a new cooperation agreement with the Japan International Cooperation Agency (JICA) strengthened Japan’s influence in transition and resilience finance internationally, linking domestic frameworks with regional and global investment opportunities.
A landmark market milestone was Tokyo’s issuance of a EUR 300 million five-year Climate Bonds Certified resilience-labelled bond, the first of its kind under the Climate Bonds Resilience Criteria and Taxonomy. The bond, which attracted EUR 2.2 billion in demand, exemplified investor appetite for credible, resilience-focused opportunities and demonstrated how clear certification can translate policy priorities into investable projects.
In parallel, Climate Bonds expanded access to practical guidance in Japan, translating key materials into Japanese and providing updated briefings on sustainable growth strategies, renewable energy infrastructure, and methane abatement. The launch of the Team Sapporo–Hokkaido Green Finance Framework introduced clear quantitative benchmarks to guide sustainable investment, supporting regional revitalisation and enhancing investor confidence in Hokkaido as a hub for green and transition finance.
Throughout 2025, extensive engagement with stakeholders, including government agencies, financial institutions, corporates, and municipalities, facilitated alignment across policy, investment, and market practice. Roundtables on transition finance, supported by the GX Acceleration Agency, deepened dialogue on national security, energy transition pathways, and capital mobilisation, contributing to a more robust and coordinated sustainable finance market in Japan.
Overall, 2025 marked a decisive shift from ambition to implementation, with aligned policy, standards, partnerships, and capital reinforcing Japan’s position as a regional leader in sustainable and transition finance. Looking ahead to 2026, Japan is expected to build on these milestones, advancing its Green Transformation agenda, scaling renewable energy investments, and strengthening global climate finance leadership.
