NEXI’s Approaches for Carbon Neutrality

To propel actions for achieving the goals of the Paris Agreement and United Nations Framework Convention on Climate Change (UNFCCC), the contracting countries including Japan will gather to discuss at the twenty-sixth session of the Conference of the Parties (COP 26) to the UNFCCC which will take place from October 31, 2021, in Glasgow, United Kingdom.

As the world accelerates its work for climate change, NEXI launches the following initiatives to contribute to global carbon neutrality, in pursuit of actualizing the Paris Agreement and net-zero greenhouse gas (GHG) emissions by 2050.

1．INCREASE EFFORTS TOWARDS ACHIEVING GLOBAL CARBON NEUTRALITY

End new support for thermal coal power generation projects

NEXI will end the provision of insurance for unabated international thermal coal power generation as agreed at the G7 Summit in June 2021.

Contribution through LEAD Initiative

In December 2020, NEXI announced the LEAD Initiative which aims to support projects that contribute to the improvement of industrial competitiveness in carbon neutral and digital fields, promotion of international collaboration with value co-creation partners, solving social issues and achieving the Sustainable Development Goals (SDGs), through underwriting insurance of such projects for a total value of one trillion yen by the end of FY2025. NEXI will heighten the following efforts to fulfill the goals of the initiative.

• Ⅰ Enhance Loan Insurance for Green Innovation.

  With the intent to further promote the use of existing technologies of renewable energy, NEXI has implemented preferential treatment for credit risk premium of Loan Insurance for Green Innovation which covers projects in the fields of environmental protection and climate change prevention.¹

• Ⅱ Extend support for new technologies

  To accomplish carbon neutrality in a long-term basis, it is essential to prompt commercialization of new technologies. NEXI will deepen cooperation with the relevant domestic and international organizations to bolster undertakings in such fields.

• Ⅲ Strengthen ties with foreign governments and corporates, and private financial institutions

  To achieve carbon neutrality in the developing and emerging countries, it is essential to mobilize private capital. NEXI will strengthen cooperation with related partners and work to fulfill its role as a catalyst in support of renewable energy deployment and energy transition.

Currently, discussions are being held at OECD on the revision of the Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence ( the “Common Approaches”). In addition to the aforementioned initiatives, NEXI will proactively take part in the discussions with the relevant parties to address on matters such as measuring and reporting of GHG emissions related to loan insurance.

2．APPROACHES TOWARDS NET ZERO BY 2050

In line with the declaration made by the Japanese government to achieve carbon neutrality by 2050, NEXI will engage in the following approaches to contribute to the fulfilling of the declared target.

• Ⅰ Enforce information disclosure based on the TCFD recommendations

  NEXI has expressed its support for Task Force on Climate-related Financial Disclosures (TCFD) in 2019 and has been encouraging Japanese businesses to disclose information related to climate change. We will continue to work on our own information disclosure based on the TCFD recommendations including the Scope 3 GHG emissions.

• Ⅱ Implement measures to reduce GHG emissions associated with the operation of trade insurance business

  NEXI will study on measures to cut GHG emissions including possible relocation of its office to an energy-saving building.

• Ⅲ NEXI will contribute to climate control and to the achievement of SDGs of the United Nations through purchasing of green bonds of both domestic and overseas.

Contact
Corporate Planning and International Relations Group, Planning and Policy Department
Tel: +81-(0)3-3512-7665

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