Climate Debt That Stalled Globally Takes Off in Japan

Japan’s push to encourage transition debt to help high emitters clean up their act means that it’s diverging from the rest of the world in developing environmental financing.

The government has drawn up detailed roadmaps to help companies shift to cleaner technology, resulting in more of the country’s issuers selling transition bonds than elsewhere. And now Eneos Holdings Inc., Japan’s largest oil refiner, is preparing to sell a novel transition-linked bond, which is pinned to its long-term carbon-dioxide reduction targets.