The Climate Bonds Initiative (CBI) has issued new policy guidance on how to best support Japan’s transition to net zero. The paper outlines seven recommendations to ensure a 1.5°C-aligned transition, including the prioritisation of mature technologies, such as energy efficiency and grid flexibility, as well as setting out a phase-out year for unabated coal. Additionally, CBI calls for policymakers to put in place clear boundaries for any investment in fossil gas, strengthen requirements for hydrogen and ammonia to ensure they are low carbon, introduce a “strong and appropriate” carbon price, enhance and expand transition plan requirements for the private sector, and build investor confidence with a strictly 1.5°C-aligned sovereign GX bond. Sean Kidney, CBI’s CEO, said: “Japan’s GX Plan, along with the proposed GX Sovereign Bond, holds the potential to drive economic growth through emissions reduction and set a global example if it maintains strict adherence to net zero standards, facilitating a shift from fossil fuels to clean energy-driven structures.”
🔴 NEW REPORT: "Japan: Policies to Grow Credible Transition Finance" delves into Japan's commitment to realising the goals of the Paris Climate Agreement, offering policy guidance for Japan's journey toward a net-zero future.
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