Tokyo, July 8 (Jiji Press)–The Bank of Japan will draw up a basic plan to deal with climate change for release in the summer, informed sources told Jiji Press Thursday.
The central bank thinks that global warming will impact prices and the stability of the financial system.
Based on this view, the basic plan will say that responding to climate change will lead to sound economic development, one of the BOJ’s objectives.
In June, the BOJ said it will introduce a new fund-supply scheme to encourage financial institutions to make investments and loans to address climate change. BOJ policymakers will discuss details next week.
The release of the basic plan is designed to showcase the BOJ’s determination to address climate change as major central banks around the world are working on the issue.
The basic plan will clarify the BOJ’s measures for reducing its own emissions of greenhouse gases caused by its duties.
Under the basic plan, the BOJ is expected to take a cautious stance on purchasing “green bonds,” securities issued by companies to finance their climate change measures, on more favorable terms than other bonds.