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World’s first sovereign climate transition bond a ‘significant milestone’

Will Japan’s $11bn climate transition bond, a world first for a sovereign, drive wider adoption of transition finance?
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World’s first sovereign climate transition bond a ‘significant milestone’Clean fuels: A liquid hydrogen tank in Kobe, Hyogo Prefecture, where a special shipping terminal has been built in order to import liquid hydrogen from Australia. Image: Etienne Balmer/AFP via Getty Images

Is 2024 the year that transition finance finally takes off? Analysts say it could be the strongest year on record following the world’s first sovereign climate transition bond issuance on February 14 by the Japanese government.

Japan’s groundbreaking and sizeable Y1.6tn ($11bn) climate transition bond will use proceeds to fund the country’s Green Transformation programme. It is broken up into different tranches.

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Anita Hawser is the Europe editor at The Banker. For the past 20 years, Anita has worked as a freelance journalist for a range of banking, finance and tech titles covering topics such as cybersecurity, financial crime, cryptocurrencies, payments, trade and supply chain finance. Before joining The Banker, Anita was Europe editor at Global Finance.
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