22 Sept 2021
BOJ to Implement New Climate Scheme and Initiate Loan Disbursement
The Index Today
The Bank of Japan announced on Wednesday that it will implement its new loan scheme which will target climate change efforts. Loans will be disbursed in late December to activities that are pushing for a greener society and a sustainable environment.
The Bank will start accepting loan applications from Wednesday onwards with disbursement plans scheduled for December and twice every year. Financial institutions are encouraged to apply to tap into the new green scheme. However, all financial institutions who apply must provide complete information about their climate goals and expected results using the green investment loans. They will be required to disclose steps they will take to meet the proposed disclosure rules which have been set by the Task Force on Climate-Related Financial Disclosures TCFD.
BOJ’s new plans are based on upcoming climate change issues and how major institutions can utilize their position to make needed changes. The bank has provided opportunity to apply for zero-interest loans to boost sustainability plans.
It is important to note here that the Task Force on Climate-Related Financial Disclosures TCFD is an international body which aims to develop disclosure rules for financial institutions, investors and banks to analyze climate-related financial risks.
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