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Japan Needs More Than Carbon Tax, Green Fund to Achieve Net Zero

  • Environment minister floats new type of debt to raise funds
  • Tokyo still ironing out details on path to carbon neutrality
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WATCH: Japan’s Environment Minister Tsuyoshi Yamaguchi says the country needs innovation to decarbonize.Source: Bloomberg

Japan needs more money to invest in innovative technology to help it achieve its decarbonization goals -- and one potential solution may be to consider a new form of sovereign debt to fund it. 

That’s the view of the country’s environment minister, Tsuyoshi Yamaguchi, who was appointed to the office in November. While other officials don’t necessarily share his vision for a different type of bond, the minister said Japan’s 2 trillion yen ($17.5 billion) green innovation fund, created in 2020, and a potential carbon tax won’t be sufficient to get to net zero.