On behalf of the Japan Bank for International Cooperation (JBIC), I would like to express my sincerest appreciation for your support and understanding.
Global socioeconomic activities are now normalized after having been constrained by the COVID-19 pandemic. Nonetheless, Russia’s invasion of Ukraine, which has upended the international order that seeks peace, coupled with soaring commodity prices, have dealt a harsh blow to the global economy. Due in part to these factors, financial markets are changing dramatically as authorities in various countries turn to monetary tightening.
On top of this, we are entering a new era in which any one country cannot attain prosperity alone unless it endeavors to work toward achieving the sustainable development goals (SDGs) that include eradicating poverty and hunger, correcting inequality and disparities, and realizing a carbon-neutral society.
Japan will be unable to gain a respectable standing within the international community without directly and firmly confronting an array of tough challenges such as its shrinking population, declining birthrate, and aging population as well as hard-pressed supply of and demand for energy, disruptions of supply chains, and decarbonization.
Under the Fourth Medium-term Business Plan (FY2021-FY2023) formulated in June 2021, JBIC has set priority targets that include realizing the SDGs, decarbonization, energy transformation, and digital transformation as it aims to fulfill its mandates steadily and flexibly. During the first fiscal year of the business plan, JBIC supported the overseas business deployment of Japanese companies affected by the pandemic as one of its COVID-19 countermeasures. At the same time, as we move into the post-COVID era JBIC provided wide-ranging support for transforming the economic structure and realizing a virtuous cycle. This included supporting high-quality infrastructure projects overseas for realizing a decarbonized society, supporting overseas M&A, and strengthening of the resilience of supply chains.
In June 2022, the Cabinet Order was amended, allowing JBIC to expand the scope of eligible support for export loans and overseas investment loans for projects in developed countries in the fields of decarbonization, supply chain resilience, and innovation. JBIC also began providing support through the Global Investment Enhancement Facility in July 2022 to support the creation of new markets and overseas business deployment utilizing environmental technologies, digital technologies, and other cutting-edge technologies.
In terms of sustainability, JBIC formulated the JBIC ESG Policy in October 2021 that articulates its action policies for realizing sustainability. Subsequently, in June 2022, JBIC newly established the Sustainability Management Department to consolidate sustainability-related knowledge and functions. In conjunction, in July 2022, JBIC established the Energy Transformation Strategy Office to promote businesses related to hydrogen, ammonia, and other forms of innovative energy as we established an organizational structure to further strengthen our initiatives for the realization of a decarbonized society.
It is precisely in times like today characterized by increased uncertainties and unclear prospects that JBIC, as a policy-based financial institution, must live up to the expectations of Japanese companies and the people of Japan.
I look forward to your continued support and cooperation.
HAYASHI Nobumitsu, Governor
Japan Bank for International Cooperation (JBIC)