- The Bank of Japan is increasing its climate change-linked lending operations, expanding a green facility that sits alongside its core monetary policy challenges of a historically weak yen and rising bond yields.
- The expansion lands inside an unresolved debate over how far central banks should go on climate, with demands for stricter criteria on green lending running against their traditional mandates.
- Policy is being set in Tokyo, where the BOJ balances climate-linked credit support against the risk of straying beyond its mandate.
Quotes
“The Bank of Japan has no shortage of immediate challenges, including the yen's historic weakness and soaring bond yields.”
“Still, it is steadily increasing climate change-linked lending amid debate over whether it and other central banks should be going further in aiding efforts to tackle global warming.”
“Demands for stricter criteria on green lending rub up against traditional role”