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NEXI launches Loan Insurance for Green Innovation


July 30, 2019

Nippon Export and Investment Insurance

Nippon Export Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to newly launch “Loan Insurance for Green Innovation” with an increased commercial risk coverage rate of 97.5% compared with that of its usual loan insurance.

Under the circumstances where the realization of projects promoting CO2 emissions reduction consistent with Paris Agreement, and of projects managing both environmental protection and economic growth are expected worldwide, there is an increasing number of private companies and financial institutions who are engaging in the development of renewable power projects utilizing offshore wind or geothermal energy, and of projects incorporating new technologies that contribute to global environmental protection.

Also, the number of institutional investors who are actively promoting ESG investing tends to grow, and more and more private companies and financial institutions are practicing corporate disclosure of environmental protection/climate-related information.

Given these facts, NEXI, that has expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations on May 27, 2019, perceives an increasing need for offering proactive support for such efforts by the private sector, and therefore decided as a public organization, to launch the newly developed Loan Insurance for Green Innovation.

This insurance can be applied for financing to the projects in the field of environmental protection/climate change prevention. More specifically, it is available only for Japanese companies (exporters or equity investors) who implement such projects while proactively disclosing information related to the field.

Policy plans applied with Loan Insurance for Green Innovation

- Buyer’s Credit Insurance
- Overseas Untied Loan Insurance (excluding special provisions on subordinated loan)

Launch date

July 17, 2019

Coverage

  • 1) Renewable energy projects (i.e., power generation projects utilizing
    sustainable energy that comes from natural resources such as solar, wind,
    hydro, geothermal, biomass power and direct solar heating, or waste-to-energy.)
  • 2) Energy conservation projects (i.e., projects utilizing facilities or equipments that are expected to contribute to reduce energy consumption, including waste heat recovery facilities and smart grid, excepting the cases where such facilities or equipments are to be applied in power stations).
  • 3) Projects utilizing new technologies that contribute to global
    environmental conservation (i.e., technologies for carbon dioxide capture, utilization and storage, technologies related to hydrogen, power storage or fuel-cell, etc.).

Method to confirm disclosed corporate information

Materials showing disclosure practice by Japanese companies or financial institutions on their corporate policies for environmental protection and climate change prevention must be submitted (e.g., copies of the corresponding sections contained in annual reports or on company website, etc.). However, if you have already publicly announced your support for the TCFD recommendations, please submit only an evidence of the act.

Contact

Inquiries regarding the insurance system

Policy Coordination Group, Corporate Planning and Policy Office
Tel: +81-(0)3-3512-7456

Inquiries regarding individual projects

Structured and Trade Finance Insurance Department; 
Management Group   Tel: +81-(0)3-3512-7675
Power Group   Tel: +81-(0)3-3512-7340
Natural Resources Group Ⅰ   Tel: +81-(0)3-3512-7672
Natural Resources Group Ⅱ   Tel: +81-(0)3-3512-7744
Infrastructure Group   Tel: +81-(0)3-3512-7674/7601

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