Financial Well-being and Sustainable Growth
NOMURA
For Our Clients: Solutions tailored to client needs (2)
Transition finance is critical to achieving decarbonization
Bond issuance rose sharply in Japan after transition technology roadmap by sector announced
By region Asia and by sector electric power account for half of
funds required for decarbonization
Estimated loans and investment required by 20501
Not all industries can make leap to decarbonization in one go
Carbon
neutral
Illustration of transition to decarbonized society²
$122trn
Asia
By region
54%
North
America
17%
Europe Others
17% 12%
Decarbonized
society
(Examples)
⚫EVs
Transition
phase
•Renewable energy,
etc.
(Examples)
Brown
economy
⚫Fuel conversion, energy efficient technologies
High efficiency power generation, etc.
By sector
Electric power
49%
Land transport
34%
Real estate Aviation 4%
5%
Now
Sharp rise in transition finance in Japan
(billions of yen)
Transition bonds
Transition-linked bonds
400
# of transactions (rhs)
20
300
Transition finance roadmap
(by sector)
200
10
10
METI, JFSA, MOE
100
announce basic guidelines
0
2020
2021
2022
(-9/9)
-
1.
Source: "Climate Finance Markets and Real Economy" Dec 2020.
2.
Source: Ministry of Economy, Trade and Industry
2030
Supported multiple transition finance transactions
JFE Holdings
Y30bn
Structuring agent, lead manager
2050
NOMURA
Osaka Gas
Y27bn
Lead manager
Use of funds
Use of funds
Energy efficiency initiatives
Manufacture of eco products
Development of ultra-innovative steel
making process
Renewable energy initiatives
Solar power business invested in
by Daigas Group
Himeji natural gas electric power
plant currently under construction
Jun 2022
Aug 2022
14View entire presentation