The Bank of Japan has joined the global battle against climate change with a series of incentives for lenders to help businesses move toward a greener economy and plans to buy foreign green bonds.
The BOJ, in a statement Friday, said it would offer banks interest-free funds for climate-linked loans or investments and exempt more of their reserves from its negative interest rate. The central bank also left its main policy settings unchanged and tweaked its economic forecasts to reflect the latest virus restrictions as Japan readies for a fan-free Olympics.
In a separate release detailing its climate strategy, the BOJ said it would buy green bonds denominated in foreign currencies using its foreign reserves, though it still held off committing to targeting Japanese green securities.