Corporate Climate Strategies and Financing the Transition to a Low-Carbon Economy in Japan

The article analyzes the current challenges and transformation of Japan's strategic approaches to financing the transition to low-carbon development at the national and corporate levels. Commitments to reduce greenhouse gas emissions under the Paris climate agreement have been strengthened in 2022 in anticipation of rapid growth in electricity generation from renewable energy sources. At the same time, real results lag behind the stated goals, and previously introduced green financing instruments are insufficient. This makes it necessary to attract funding to sectors of the economy that do not fall into the “green” category, since they are difficult to decarbonize and cannot be expected to reduce emissions in the short term (hard-to-abate), but may become promising in the future when they are developed relevant technologies. Funding and development of such technologies and sectors can create the preconditions for achieving a lowcarbon development trajectory. An analysis of the development of strategic documents in the field of national climate policy is presented and the progress of financing the transition to a low-carbon economy is analyzed. Approaches to combating greenwashing, as well as the development of the securities market, are briefly commented on. Due to the limited natural energy resources and the island position of the country, the course towards decarbonization is natural. Regulation is generally evolving consistently, covering sectors that are difficult to decarbonize, in line with the international climate agenda and taking into account national interests. At the present stage, Japan is faced with problems of attracting investors, improving financing mechanisms and increasing confidence in it on the part of financial market participants. Further research will show what results have been achieved along this path.