ESG Today reports that hard-to-abate sectors will be the primary focus of the funding, which is planned to reach 11 billion dollars on the long term. Over the next decade, Japanese officials also announced they plan to raise up to 133 billion USD for the country's climate transition.

By 2050, Japan plans to become a net-zero economy, while by 2030, it aims to reduce its carbon footprint by as much as 46%. To do that, government representatives laid a clean energy plan back in 2021 to double the share of renewable power and reach 36-38% by 2030.

As per Japanese officials, as much as 1 trillion USD will be needed over the next decade, both in public and private investments, for the country to reach its long-term climate goals.

Government representatives explained that "in addition to further promotion of green investment in areas such as renewable energy, it is also important to promote the transition in decarbonization such as low carbon initiatives in hard-to-abate sectors (the industrial and energy conversion sectors where there are no alternative measures for decarbonization technically and economically at this moment) from the viewpoint."

The second tranche of the bonds could be issued on February 27th, with additional 9.3 billion USD bonds expected to be issued in April, 2024.