METI to promote transitional finance among small and medium-sized enterprises and encourage its use in Asia
On July 16, the Ministry of Economy, Trade and Industry (METI) outlined its direction for promoting “transition finance.” This initiative will supply funds to industries undertaking transitions toward the decarbonization of their operations. Domestically, the program will target small and medium-sized enterprises as well as regional companies, while internationally, it will aim to expand its reach across Asia.
METI outlined the policy at the Transition Finance Environment Improvement Study Group convened on the same day. It proposed expanding the use of transition finance, which is currently limited to major companies in high greenhouse gas (GHG)-emitting industries such as steel, chemicals, and electricity, by starting with core regional companies. Under this approach, funds raised would be allocated to projects based on the goals, strategies, and frameworks established by core regional companies or would allow individual companies implementing such projects to procure funds directly.