0. Investing in and building environmental assets: Japanese perspective
Takejiro Sueyoshi
CEO, Green Finance Organization Japan
Special Advisor to UNEP FI
25th October, 2016

1. Natural Capital Round Table in Tokyo
“What are the risks and opportunities of Natural Capital to Japanese Corporations and Financial Institutions?”
(Photo credit: Secretariat at Principles for Financial Action for the 21st Century)

2. Satoyama landscape & Satoumi seascape
Satoyama is a properly managed land by people. It has a mosaic feature of different land uses, woodland, grassland, paddy field, farmland, irrigation, and human settlements.
People used to live in
good harmony with nature.

3. Japan’s Import Dependent Economy
About 50% of total material inputs into Japan’s Economy are imported from overseas.
Heavily dependent on Energy and Food import.
Yet, due to limited conservation activities in overseas countries,
Japan is exposed to significant supply chain risks.
(Source: )

4. What are the implications?
Supply chain risk management
Risk assessment tools - how, and how much impact?
Risk map - where?
New business opportunities
Who to reveal hidden value of nature from multidimensional aspects?
Who to finance, private and/or public? Any innovative financing solution?
What are the existing Japanese Best Practices?
Corporations - Oji Paper, AEON, and Suntory
Financial Institutions - SMBC, DBJ, SMTB, and Green Finance Association

5. Manufacturing/Processing
Case of Oji Paper Promoting biodiversity conservation and Supply of Eco-friendly Products
Forest Management
FM Certification
Manufacturing/Processing
COC ertification
Sales
COC ertification
Oji Group’s Integrated Management
(Source:
Case of Retail sector: AEON
Case of Beverage sector: Suntory
promoting sustainable fishing by certifications
committing to “Water Sustainability” and reducing environmental impact
They signed long-term contracts with forest owners and in 2003 began water resource cultivation and preserve biodiversity in their natural water sanctuary.
(Source:
(Source:
(Source:

6. Case of Financial sector:
Development Bank of Japan (DBJ)
Environmentally Rated Loan Program since 2004.
Sustainability Bond issued in 2015 investing only into projects with a high value for the environment and society.
Sumitomo Mitsui Banking Corporation
Food and Agriculture Assessment Loans and Private Placement Bonds
NADESHIKO Loan and Private Placement Bond
Green Bond in 2015.
Sumitomo Mitsui Trust Holdings
Environmental Rating Loans with the Evaluation of Natural Capital Preservation
(Source:

7. Green Bank Congress 2016 Participants:
UK Green Investment Bank plc (UK)
Clean Energy Finance Corporation (Australia)
Connecticut Green Bank (USA)
Malaysian Green Technology Corporation (Malaysia)
Green Finance Organisation (Japan)
Energy Action Network, Vermont (USA)
Organisation for Economic Co-operation and Development (OECD)
The Coalition for Green Capital (USA)
The Natural Resources Defense Council (USA)
Korea Environmental Industry & Technology Institute (Korea)
Green Climate Fund
Bank of Japan (Japan)
Government Pension Investment Fund (Japan)
Climate Action Network International
Climate Works

8. Green Fund of Japan Launched : May 2013
Mission: To accelerate green finance towards a low
carbon society in Japan by supporting renewable
energy projects
Funding source: Climate Chang Mitigation Tax
Fund Scale : 15.3b JPY (approx. 153 mil USD)

9. We aim to….. a low carbon society in Japan
Support projects which reduce CO2 emissions and revitalize local communities
Create a new stream of private green capitals
create "success models"
Spread the models nationally
Equity Investment
+ with a part of ownership, we support projects as a whole
a low carbon society in Japan

10. Climate Change Mitigation Tax Financial institutions
A funding structure
Low Carbon Project
Climate Change Mitigation Tax
Financial institutions
etc
Debt
Loan
Green Fund
Green Fund
Equity
Invest *
Sponsor
Equity
Invest
＜Financial Structure＞
* Our investment is limited to 1/2 of the total
equity amount.

11. More Opportunities in Green SMEs for Regional Economy (re)vitalization
Renewable energy
Green infrastructure
Mitigation bank
A country of
“Blessing Nature”
Kikuchi Gorge, Kumamoto
Relocation
Eco tourism
Biodiversity and genetic resource
..more room to build
“environmental assets”

12. Thank you very much!
شكرا جزيلا
ご清聴、有難うございました。