Japan auctions a five-year climate transition government bond at a 2.2 per cent coupon

2 November 2026

Japan sold ¥249.8 billion of climate transition bonds on Monday, the fifth such sale this year and the eleventh since the programme began in February 2024.
Japan remains the only national government in the world that uses the climate transition bond label for its debt.
The bonds are part of a ¥150 trillion programme running to 2033 that channels money into named emission-cutting projects.
The bid-to-cover ratio was 3.84 and the highest yield accepted was 2.2 per cent.
Most of the debt has been bought by the Bank of Japan and other domestic institutional investors.
This year's proceeds are earmarked for artificial intelligence, semiconductors, robotics and nuclear technology including fusion, with only 4 per cent going to making renewable energy a major power source.
Japan has a target of cutting greenhouse gas emissions by 60 per cent by fiscal 2035 against 2013 levels, yet it is still the world's fifth-largest carbon dioxide emitter on International Energy Agency figures.