Japan extends transition bond push despite fossil-fuel reliance

What happened: Japan sold its fifth climate transition bond of the year, remaining the only government to use the designation despite increasing reliance on fossil fuels since the war in Iran began. Key numbers: ¥250 billion ($1.6 billion) issuance. Why it matters: Japanese issuers account for about 90% of the climate-transition bond market since 2024, per Bloomberg Intelligence. Environmental think-tanks have criticized Japan for reinforcing fossil-fuel reliance despite a goal of cutting emissions 60% by fiscal 2035 from 2013 levels.

Japan sold its fifth climate transition bond of the year, remaining the only government to use the designation despite increasing reliance on fossil fuels since the war in Iran began.

Japanese issuers account for about 90% of the climate-transition bond market since 2024, per Bloomberg Intelligence. Environmental think-tanks have criticized Japan for reinforcing fossil-fuel reliance despite a goal of cutting emissions 60% by fiscal 2035 from 2013 levels.