Japan Bank for International Cooperation (JBIC)
Following the enforcement of the act to revise part of the Japan Finance Corporation Act (the Revised JFC Act) on March 31, 2010, JBIC has been supporting projects that have a positive impact on the preservation of the global environment, including the development of photovoltaic power generation facilities and highly energy-efficient power plants that incorporate advanced environmental technologies, as well as the installation of energy saving equipment. In doing so, JBIC utilizes its loan, investment and guarantee functions while seeking to mobilize private funds.
Under this support initiative, called GREEN (Global action for Reconciling Economic growth and ENvironmental preservation), JBIC has financed projects aimed at preserving the global environment―such as projects that significantly reduce greenhouse gas (GHG) emissions―while taking into account propagating advanced Japanese environmental technologies around the world.
Taking into account the launch of the Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)*1 on July 1, 2018, we recently added Overseas Investment Loans to GREEN support methods in order to actively support projects that have global environmental preservation benefits.
Through these initiatives, JBIC aims to promote overseas infrastructure development that contributes to global environmental preservation while widely utilizing the know-how and technology of Japanese companies.
Eligible projects are those which contribute to the preservation of the global environment, such as preventing global warming, as determined by JBIC's sole discretion.
In addition, if JBIC determines that the project requires a quantitative measurement process for GHG emission reductions, JBIC confirms such reductions by evaluating an estimate of emission reductions under the J-MRV Guideline.
For details, please see the List of Examples of Eligible Projects.
Methodology and Specific Examples
When providing loans, investments and guarantees under GREEN, JBIC will draw on its Overseas Investment Loan, Untied Loan and Equity Participation methodologies while seeking to mobilize private funds. Below are examples of JBIC financing under GREEN:
(1) Co-financing with, or guarantee for, private financial institutions
JBIC extends a loan when co-financing with private financial institutions, or provides a guarantee for the co-financed portion, to support a project expected to significantly reduce GHG emissions, such as the development of photovoltaic power generation and highly energy-efficient power plants.
(2) Co-financing with multilateral financial institutions
JBIC will provide co-financing with a multilateral international financial institution when the institution extends a loan for a project in a developing country that has substantial benefits regarding reducing GHG emissions. (In this case as well, the loan is co-financed not only with JBIC, but also with the private financial institution.)
(3) Equity participation in the fund established by foreign companies and multilateral institutions
Given the significance of efforts by the international community for preserving the global environment, JBIC makes equity investments in funds that foreign firms and multilateral institutions have established to reduce GHG emissions.
For details on Overseas Investment Loans, Untied Loans and Equity Participation, please see the following:
- *1See the June 28, 2018, release for details on the Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG).