JFSA Consults on Guidelines for Climate Transition Finance
JFSA proposed guidelines on the implementation of climate transition finance, with the comment period on these guidelines ending on April 16, 2021. The draft guidelines, which were formulated by the Study Group on Environmental Improvement for Effective Transition-Finance, highlight the significance of promoting transition-finance initiatives in tandem with the initiatives to realize a decarbonized society based on the global objective of carbon-neutrality by 2050. The study group that formulated these draft guidelines was established by JFSA, the Ministry of Economy, Trade, and Industry (METI), and the Ministry of Environment to formulate basic principles for transition-finance in Japan, particularly in terms of raising funds through transition bonds and loans.
The International Capital Markets Association (ICMA) issued, in December 2020, the Climate Transition Finance Handbook to provide clear guidance and common expectations to capital markets participants on the practices, actions, and disclosures to be made available when raising funds in debt markets for climate transition-related purposes. The Climate Transition Finance Handbook acts as guidance for issuers seeking to utilize green bonds, sustainability bonds, or sustainability-linked bonds toward the achievement of their climate transition strategy. The guidelines issued by JFSA are in line with the Climate Transition Finance Handbook from ICMA.
Comment Due Date: April 16, 2021
Keywords: Asia Pacific, Japan, Banking, Securities, Climate Change Risk, Green Bonds, Sustainable Finance, ESG, Transition Risk, ESG, JFSA
Previous Article
PRA Proposes Rules Related to IRB Approach for Credit RiskRelated Articles
EBA Guide to Monitor Threshold for Intermediate Parent Undertakings
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
PRA Finalizes Approach to Supervision of International Banks
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
FCA Issues PS21/9 on Implementation of Investment Firms Regime
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
EBA Proposes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
IOSCO Proposes Recommendations on ESG Ratings and Data Providers
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
ESMA Group Issues Recommendations on RFR Switch in Interdealer Market
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
EIOPA Consults on Reporting and Disclosures Under Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
