Tokyo could become a global leader in green "transition” finance that helps heavy carbon-emitters reduce their footprint, according to an executive at a public-private partnership charged with bolstering the capital’s financial ecosystem.
Transition finance is the concept of investing in companies to help them cut emissions, something the government is pursuing on the way to its target of carbon neutrality by 2050. Building a market in Tokyo to enable such financing of manufacturers across Asia could also strengthen Japan’s supply chains and economic security, according to the executive director of the Organization of Global Financial City Tokyo.
"We are looking for ways to build a market in Tokyo that can take the lead in transition finance,” Keiichi Aritomo told Bloomberg in an interview last week. He added the group is putting together a proposal that he will seek to have reflected in the government’s economic plan for next year. Details of the proposal were not yet available.