BoJ to offer zero rate, long-term funds in climate scheme

Climate concerns: Pedestrians walking past the Bank of Japan in Tokyo. Its new loan scheme is designed to encourage green finance. ― Bloomberg

TOKYO: Japan’s central bank will likely offer zero interest, long-term funds to commercial lenders that provide loans or investment for activities aimed at combating climate change, said sources familiar with its thinking.

The plan will be part of an outline due next week that lays out details of the Bank of Japan’s (BoJ) new loan scheme, which is designed to encourage green finance. The move would put the BoJ in line with a growing number of central banks stepping up efforts to address the economic fallout of climate change.