Japanese finance leaders highlight need to accelerate country’s transition efforts at inaugural event

Tokyo, 29 March 2024 – The Glasgow Financial Alliance for Net Zero’s (GFANZ) Japan Chapter released a Chapter Statement supported by seventeen Japanese financial institutions to send a powerful message on net zero to stakeholders within Japan and beyond. The GFANZ Japan Chapter Statement was discussed at the inaugural GFANZ Japan Summit held on March 12, 2024, where leaders across Japan’s financial system agreed on the need to appropriately work together to accelerate the country’s transition to net zero.

The Summit brought together approximately 30 high-level leaders across the Japanese financial system including CEOs and senior executives of leading financial institutions in Japan who are the members of Japan Chapter’s Consultative Group. Financial institution representatives included Seiji Inagaki (Chair of the Board, The Dai-ichi Life Insurance Company, Limited) and Hironori Kamezawa (Group CEO, Mitsubishi UFJ Financial Group, Inc.), who are the current and incoming Chairs of the Group respectively. Kenji Fujii, who brings 40 years of financial industry experience, has been appointed as Japan Chapter Lead.

The statement highlights the importance of scaling transition finance for objectively identified high-emitting sectors and entities with credible transition plans. The statement also calls for government support, collaboration, and leadership to identify detailed transition roadmaps for high-emitting sectors and the key policy actions necessary to achieve them.

Mark Carney, UN Special Envoy for Climate Action and Finance and Co-Chair of GFANZ, spoke to attendees virtually to convey GFANZ’s continued engagement with leaders in the Japanese and international financial system and real economy. Carney’s remarks highlighted Japan’s role in leading the energy transition in the APAC region and the GFANZ Japan Chapter’s role in engaging Japanese companies, financial institutions, and policymakers to advance the country’s net-zero transition.

“Last July, the Government of Japan formulated the GX Promotion Strategy, including the implementation of carbon pricing, aiming to mobilize public and private investments exceeding JPY 150 trillion over the next decade to realize net zero by 2050. Building upon this strategy, last month we issued the world’s first government-issued transition bonds. Harnessing the full potential of finance is key to addressing the global climate change, and GFANZ plays a vital role in this endeavor,” said Prime Minister of Japan Fumio Kishida.

“Every country, city, company, and financial institution needs a credible, science-aligned net-zero transition plan to fulfill its commitment. The GFANZ Japan Country Chapter and the GFANZ APAC Regional Network are focused on helping GFANZ mainstream this imperative. Transition finance means more than just financing clean energy, as important as that is. It must include financing heavy-emitting companies intent on decarbonizing. I applaud the GFANZ Japan Country Chapter for work delivered and Japan for leading the way on the fight against climate change,” said Mark Carney, UN Special Envoy for Climate Action and Finance and Co-Chair of GFANZ.

“As a member of the G7, Japan should take firm action to achieve substantial emission reductions by 2030. As financial institutions participating in the GFANZ Japan Chapter, we would like to play a role as ‘change makers’ by taking forward-looking actions and proactively turning the climate crisis into an opportunity for growth,” said Seiji Inagaki, Director, Chair of the Board, The Dai-ichi Life Insurance Company, Limited and Chair, GFANZ Japan Chapter Consultative Group.

“The government has an important role to play in introducing the policies necessary for Japanese industry to maintain a solid competitive position in the global market as it goes through its net zero transition journey. At the same time, it does not make sense for Japan alone to pursue decarbonization given the nature of the challenge, and Japan should be part of the solution to decarbonize the Asian region,” said Hironori Kamezawa, Group CEO, Mitsubishi UFJ Financial Group.

“We welcome the initiatives of the GFANZ Japan Chapter as set out in the Statement, as they strongly support the achievement of net zero by Japanese financial institutions. In particular, the chapter plays a key role in helping Japan contribute to net zero in Asia and the world through actively participating in international discussions on transition finance, planning, and proposals. We look forward to continuing to realize the philosophy of ‘GFANZ to Japan and Japan to GFANZ,’” said Shigeru Ariizumi, Vice Minister for International Affairs, Financial Services Agency of Japan.