BOJ to Back Fight against Climate Change
Tokyo, July 16 (Jiji Press)--The Bank of Japan said Friday it will support the fight against climate change by providing zero interest funds to commercial financial institutions making investments and loans in the area.
The BOJ also released its strategy on climate change, announcing plans to purchase "green bonds" using foreign currency-denominated assets through cooperation with other Asian central banks.
The fund supply system was discussed at the central bank's two-day Policy Board meeting that ended on Friday, in line with a decision at the previous monetary policy meeting in June.
With the system, expected to start this year and continue at least until fiscal 2030, the BOJ hopes to show its resolve to support the fight against climate change, following in the footsteps of European and other major central banks.
The new funding system will cover financial institutions that disclose a certain amount of information on measures against climate change. If such institutions use the system, the burden of negative interest on current account deposits they hold at the BOJ will be relieved.
[Copyright The Jiji Press, Ltd.]