Green
Bank of Japan Appears Reluctant to Embrace Green Bonds Despite Climate Fears
- Debate is spreading about role of central banks on climate
- Analysts say Japan’s central bank already has much on plate
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The Bank of Japan has joined other global central banks in studying climate change-related risks, but is unlikely to target bonds supporting environmentally friendly projects anytime soon.
That’s the view of analysts assessing the circumstances of a central bank already facing criticism that its massive buying of assets is overstretched and distorting markets. After nearly seven years of the BOJ failing to attain its main 2% inflation target, economists see little imperative for the bank to add to its goals.