Japan Bank for International Cooperation(JBIC)
Green Bond Framework
October 2021

Table of Contents
1. Introduction ......................................................................................1
1.1 History ......................................................................................1
1.2 JBIC Operations .......................................................................1
2. JBIC ESG Policy .............................................................................2
2.1 Policies towards the realization of sustainability ....................2
2.2 Climate Change Policy ............................................................3
3. Rationale for Issuance ......................................................................4
4. Alignment with the Green Bond Principles 2021 ...........................4
4.1 Use of Proceeds ........................................................................4
4.2 Project Evaluation and Selection Process ................................6
4.3 Management of the Proceeds ...................................................7
4.4 Reporting ..................................................................................8
5. External Review ...............................................................................8
5.1 Second Party Opinion ..............................................................81. Introduction
1.1 History
Pursuant to the Japan Bank for International Cooperation Act (the “JBIC Act”), Japan Bank forInternational Cooperation (“JBIC”) was established as a joint-stock corporation wholly owned by theJapanese government on April 1, 2012 (and was formerly known as Export-Import Bank of Japan).
1.2 JBIC Operations1
The Missions of JBICJBIC is a policy-based financial institution wholly owned by the Japanese government, which
supplements the financial transactions implemented by private-sector financial institution and has theobjective of contributing to the sound development of Japan and the international economy andsociety, by conducting financial operations in the following four fields:• Promoting overseas development and securement of resources which are important for Japan• Maintaining and improving the international competitiveness of Japanese industries• Promoting the overseas business having the purpose of preserving the global environment,such as preventing global warming• Preventing disruptions to the international financial order or taking appropriate measures withrespect to damages caused by such disruption
JBIC Corporate Philosophy and Slogan
JBIC conducts its operations under the purpose stipulated in Article 1 of the JBIC Act withfollowing Corporate Philosophy and Corporate Slogan.
••

Corporate Philosophy
Positioned at the crossroads of global business opportunities, JBIC is opening new venues tothe future for the Japanese and global economy.
o Hands‐on Policy:▪ Pioneering new value by participating at the forefront of overseas project
development, and by engaging proactively in projects from the early stages
o Customer‐1st Approach:▪ Offering customers one‐of‐a‐kind solutions by adopting their perspectives
and integrating their views into policy developmento Forward‐looking Action:▪ Contributing to the sustainable development of Japan and the world as awhole by deploying highly professional skills, with a view to realizing asecure and affluent future society
Corporate Slogan

Financial Instruments
In order to execute the above missions, JBIC conducts the following principal operations stipulated
in the JBIC Act and related regulations.
1) Export Loans. For the purpose of promoting exports of Japanese plants and for the purpose of
securing equally competitive conditions in terms of financing when Japanese exporters
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https://www.jbic.go.jp/ja/about/role-function/images/jbic-brochure-english.pdf

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2)

3)

4)

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6)

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compete with other developed countries, export finance provides loans and guarantees offunds to importers and financial institutions to support exports of plants and technologies byJapanese companies mostly to developing countries. In particular, export finance supports
export of products such as power generation facilities, communication equipment, and marine
vessels.
Import Loans. For the purpose of securing a stable supply of resources for Japan, importfinance provides loans and guarantees of funds to support imports of oil, liquified natural gas(LNG), iron ore, other rare minerals and other strategically important materials to Japan.
Apart from natural resources, the guarantee facility supports imports of goods and services forwhich there are crucial domestic needs for the sound development of the Japanese economy,such as aircrafts.
Overseas Investment Loans. For the purpose of promoting Japan’s overseas businessactivities, overseas investment finance provides loans and guarantees of long-term businessfunds to support foreign direct investments undertaken by Japanese companies, overseas
Japanese affiliates and foreign governments or financial institutions that have equity
participations in or provide loans to such overseas affiliates. The eligible purposes include
local manufacturing, resource development and other business ventures.
Untied Loans. Untied loans provide loans and guarantees of funds to support improvements inthe overseas business environment or to stabilize their currencies to facilitate Japanese trade,investments and other overseas business activities by foreign governments and foreign
government agencies. Untied loans also support projects that have a strong impact onpreserving the environment.
Bridge Loans. Bridge loans provide short-term financing for developing country governments
facing balance-of-payments difficulties or other emergencies until international agencies canprovide economic support funds.
Equity Participations. Equity participations are equity investments in Japanese joint ventures
conducting business overseas or overseas companies in which Japanese companies haveinvested for the purposes of a business tie-up, and equity investments in funds in which
Japanese companies or international institutions participate.
Research and Studies. JBIC conducts research and studies to support its operations.

2. JBIC ESG Policy2
2.1

Policies towards the realization of sustainability

The world’s economies are facing the shared challenge of dealing with climate change whilst
pursuing sustainable growth and development, and all the while seeking to achieve a balance between
the economy, society, and the environment. In light of these challenges, JBIC’s Fourth Medium-term
Business Plan (announced in June 2021), identified the addressing of “global issues toward realizing
sustainable development for the global economy and society” as its first key focus area. Accordingly,
JBIC is actively working to support this global agenda through the provision of green finance,transition finance and social impact finance. In addition, as an organization, under the Fourth
Medium-term Business Plan and the Second Plan for Work Style Reform, JBIC will strive to foster aculture that harnesses the diversity of its employees, support individual career development andknowledge development, and continue to improve the working environment for its employees.
JBIC will continue to review its organizational structure, systems and processes with a view tostrengthening its sustainability governance and management systems, so that JBIC can actively
support Japanese companies and the global economic community in their efforts to achieve
decarbonization and SDG goals, and as appropriate, disclose the results of the provision of suchsupport to its stakeholders.
2

Regarding JBIC ESG Policy, Japanese language version shall prevail English translation.

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With a view to fulfilling JBIC’s role as “a navigator to build a brighter future with Japanese power”(as stated in JBIC’s Fourth Medium-term Business Plan), JBIC will, through its risk-assuming
function as a policy-based financial institution and long-standing relationships with its stakeholders
and overseas networks, proactively contribute to fostering global sustainable development andresolving global challenges, to ensure the realization of sustainable societies.

2.2

Climate Change Policy

Climate change is one of the most urgent challenges facing the world’s economies. Following the
adoption of the Paris Agreement in December 2015, the global effort to address climate change has
accelerated. In October 2020, the Japanese government made a declaration to aim for carbon
neutrality by 2050 (i.e. to achieve net zero greenhouse gas emissions). In order to achieve theobjectives of the Paris Agreement, global collective action is urgently required through not only
efforts led by developed countries, but also through coordinated action taken by developing andemerging countries to ensure the energy transition towards a decarbonized society.
In recognition of the urgency to accelerate global concerted efforts to combat climate change, andin alignment with Japanese government policy, JBIC sets out its plans to address climate change inparagraphs (1) to (4) below, in advance of the United Nations Climate Change Conference (COP26)
starting on October 31, 2021. As Japan’s policy-based financial institution, JBIC will continue to beproactive in providing financial support for efforts to tackle climate change, based on Japanese
government policy.

Contributing to the global implementation of the Paris Agreement
In order to align with the international goals to achieve the objectives of the Paris Agreement, JBIC
is committed to pursuing ambitious and accelerated efforts to reduce its operational emissions to net
zero by 2030, and to achieve net zero emissions in its finance portfolio by 2050. Moreover, throughcontinued engagement with the relevant national governments and authorities, JBIC will contribute inrealizing global carbon neutrality by supporting and accelerating the energy transition towards a
decarbonized society of emerging and developing countries.
Strengthening climate change-related financeAchieving the objectives of the Paris Agreement will require substantial investment. As such, theflow of funds, including through the mobilization of private finance, needs to be redirected andapplied to pathways towards decarbonization. JBIC will harness its risk-assuming function as apolicy-based financial institution as well as its negotiation leverage, to promote green innovation andaccelerate the energy transition of emerging and developing countries through engagement with therelevant national governments and authorities, and through multinational coordination. JBIC will
thereby take the lead in global decarbonization through such actions and the provision of finance, in
addition to disseminating climate change related information, and issuing green bonds, among otherthings.
In addition to ending the provision of financing for unabated international thermal coal power
generation as agreed at the G7 Summit in June 2021, JBIC will also back efforts leading to thetransition to clean energy generation by harnessing new technologies.
Enhanced climate-related financial disclosures pursuant to the TCFD recommendations
In recognition of the importance of reporting on climate-related financial information, JBIC
announced in October 2019 of its endorsement of the Task Force on Climate-related Financial
Disclosures (TCFD) that was established by the Financial Stability Board (FSB). JBIC also engages in
the TCFD Consortium, which was set up as a forum for institutions who support the TCFD
recommendations to exchanges ideas. JBIC will proceed in disclosing relevant information based on3the TCFD framework.
Environmentally and socially conscious financings and investments
Since the formulation and publication of the JBIC Guidelines for Confirmation of Environmental
and Social Considerations in 1999, JBIC has ensured that the financing of its relevant projects havebeen subject to the environmental and social impact considerations required under such guidelines.
JBIC will be at the forefront of such environmental and social considerations by reviewing, as
appropriate, the guidelines and taking into consideration, among other things, the internationalframeworks that are in place with respect to environmental and social considerations, the discussions
taking place at the Organization for Economic Co-operation and Development (OECD) regarding theCommon Approaches for Officially Supported Export Credits and Environmental and Social Due
Diligence, and a wide public consultation process.

3. Rationale for IssuanceThrough the issuance of Green Bonds, JBIC aims to contribute to the realization of a sustainable
society and environment through green finance as a responsible issuer. In addition, by issuing Green
Bonds, JBIC intends to provide investment opportunity for investors having interests in ESG
investments.

4. Alignment with the Green Bond Principles 2021
JBIC has created the following green bond framework (“the Framework”), based on the Green Bond
Principles 2021 (“GBP”), established by the International Capital Markets Association (“ICMA”). The
GBP is a voluntary guideline that sets out best practices for issuance of Green Bonds, and the
Framework is aligned with the four core components of the GBP.
4.1 Use of Proceeds
JBIC will allocate the amount equivalent to the net proceeds of the Green Bonds to finance businesses
that meet the following "Eligibility Criteria" (including financing or refinancing in whole or in part forexisting or future projects).
JBIC's financing includes not only direct loans to eligible entities, but also two-step loans (TSL)
through other financial institutions.

4Eligibility Criteria
The amount equal to the net proceeds of Green Bonds will be allocated to projects(“Eligible Projects”)
that meet ALL of the following conditions below:(i)
A project which meets one or more of the GBP Eligible Project Categories below; and(ii)
A project which has been financed by JBIC within the 36 months prior to the date ofrelevant Green Bonds issuance, or will be financed within the 36 months on or after thedate of relevant Green Bonds issuance.

GBP Eligible Project
Category
Renewable Energy

Clean Transportation(Trains and Railways)

Clean Transportation(Zero-emission vehicles(”ZEV”))

Eligibility Criteria
Funds to finance or refinance development,
construction, management, operation and/or
maintenance of renewable energy projects(including production, power generation,transmission, and parts manufacturing) specified
below (limited to projects with less than 100g-CO2/ kWh, and less than 15% usage of non-renewableenergies as backup power):• Solar and Solar Thermal• Wind (offshore and onshore)• Geothermal• Hydro (power generation of 25 MW or
less)• Biomass (waste-derived or wood / woodpellet-derived products certified by the
Forest Stewardship Council (FSC) or
Programme for the Endorsement of Forest
Certification(PEFC))• Hydrogen (Hydrogen production: limited
to green hydrogen, which has zero CO2emission during production andcombustion. Hydrogen power generation:
limited to power plants fueled by 100%
green hydrogen)
Funds to finance or refinance clean transportation
projects (excluding freight vehicles for transporting
fossil fuels) such as：• Manufacturing, operation and/or
maintenance of electric trains and/or
energy efficient trains (CO2 emissions ofless than 50g-CO2 / p-km for passenger
trains and 25g-CO2 / t-km for freight trains)• Construction, extension, upgrade,maintenance and/or operation of railways
and/or railway systems
Funds to finance or refinance clean transportation
projects (Zero-emission vehicles: Battery electricvehicle (“BEV”), Fuel cell vehicle (“FCV”) etc.)
such as：• Investment in property plant and equipment(PP&E) for manufacturing of BEV and

Environmental
Objective
Climate change
mitigation

Pollution prevention
and control

Climate change
mitigation
Pollution prevention
and control

Climate change
mitigation
Pollution prevention
and control

5Green Buildings

components; development of charging
infrastructure• Investment in property plant and equipment(PP&E) for manufacturing of FCV andcomponents; development of charging
hydrogen infrastructure
Funds to finance or refinance real estate properties
Climate change
which have obtained or is expected to obtain one of mitigation
the following:• Gold or Platinum rating under Leadershipin Energy and Environmental Design(“LEED”)• Excellent or Outstanding rating under
Building Research Establishment
Environmental Assessment Method(“BREEAM”)• A or S rating under Comprehensive
Assessment System for Built Environment
Efficiency (“CASBEE”)

Exclusionary Criteria
JBIC commits to not knowingly allocating the net proceeds of Green Bonds to finance the assets,
projects and sectors included in the following exclusionary criteria:
•
•
•
•
•
•

Development, refining and transportation of fossil fuels (including coal, oil and gas)
Fossil fuel power generation
Nuclear power generation
Weapons and defense
Gambling / Casino
Tobacco

4.2 Project Evaluation and Selection Process
Application of Eligibility Criteria in project selection
In consultation with the Corporate Planning Department, JBIC's Treasury Department will selectprojects that meet the Eligibility Criteria and allocate the funds raised by the issuance of Green Bonds.
Monitoring of selected projects
All Eligible Projects shall be subject to periodic monitoring during the entire lifecycle of the financing
until the financing is redeemed at maturity. Upon the unlikely event where projects are to be cancelled
and prepaid, they will be immediately disqualified and deleted from the list of Eligible Projects.
Procedure for Confirmation of Environmental and Social Considerations
In conducting its operations, JBIC confirms whether the borrower has made appropriate consideration
for local communities and the natural environment in all the JBIC-financed projects based on the “Japan
Bank for International Cooperation Guidelines for Confirmation of Environmental and Social
Considerations” (“Environmental Guidelines”).
The Environmental Guidelines set out the procedures, criteria, and requirements that JBIC-financed
projects must meet in confirming environmental and social considerations. When JBIC judges that the6

project proponents have not made appropriate environmental and social considerations, it willencourage them to take remedial measures. If appropriate environmental and social considerations havenot been taken, JBIC may decide not to extend funding.
Prospective projects are screened prior to funding and classified into categories according to the degreeof potential environmental impact. An Environmental Review is then conducted to verify that theenvironmental and social impacts have been considered in a proper manner. After funding has been
approved, projects are monitored to assess the actual impact.

Projects are classified into one of the following four categories in relation to the degree ofenvironmental impact, based on the information provided by the project proponent during the screening
process.

4.3 Management of the Proceeds
The funds raised by JBIC from Green Bonds will be allocated to Eligible Projects. JBIC Treasury
Department will track and monitor the amount of Green Bonds issued under this Framework to beallocated to the Eligible Projects. In addition, until the full amount of the proceeds are allocated to
Eligible Projects, JBIC will manage the unallocated proceeds in cash or cash equivalents.

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4.4 Reporting
JBIC will report the allocation and impact of this Green Bonds on an annual basis until the net
proceeds are fully allocated to Eligible Projects.
Allocation Report（i）The amount of net proceeds allocated / unallocated to Eligible Projects（ii）The allocated amount for each Eligible Project（iii）The ratio of new / refinanced projects

Impact Report
JBIC will publish impact reporting including the following indicators to the extent practicallypossible.
GBP Eligible Project
Category

Reporting contents

Renewable Energy••

Estimated power generation capacity (MW)
Estimated reduction in CO2 emissions (CO2t)

Clean Transportation(Trains and Railways)•

Operating distance or Volume of passenger transported (Annual
number of passengers transported*operating distance)

Clean Transportation•

Estimated production volume•

Number of properties, total amount. Breakdown for each external
certification
Positive Environmental impact of major properties(Zero-emission
vehicles ”ZEV”)
Green Buildings•

5. External Review
5.1 Second Party Opinion
JBIC has retained Sustainalytics Japan Inc., an independent provider of ESG research and ratings, toprovide a Second Party Opinion (SPO). The SPO is available on our website.

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Disclaimer
The information and opinions contained in this JBIC Green Bond Framework (the “Framework”) areprovided as of the date of this Framework and are subject to change without notice. None of JBIC or
any of its affiliates assume any responsibility or obligation to update or revise any statements herein,
regardless of whether those statements are affected by the results of new information, future events orotherwise. This Framework represents current JBIC policy and intent, is subject to change and is notintended to, nor can it be relied on, to create legal relations, rights or obligations. This Framework is
intended to provide non-exhaustive, general information. This Framework may contain or incorporate
by reference public information not separately reviewed, approved or endorsed by JBIC and accordingly,
no representation, warranty or undertaking, express or implied, is made and no responsibility or liability
is accepted by JBIC as to the fairness, accuracy, reasonableness or completeness of such information.
This Framework may contain statements about future events and expectations that are forward looking
statements. None of the future projections, expectations, estimates or prospects in this document should
be taken as forecasts or promises nor should they be taken as implying any indication, assurance orguarantee that the assumptions on which such future projections, expectations, estimates or prospects
have been prepared are correct or exhaustive or, in the case of assumptions, fully stated in the
Framework. No representation is made as to the suitability of any bonds to fulfil environmental andsustainability criteria required by prospective investors. Each potential purchaser of bonds should
determine for itself the relevance of the information contained or referred to in this Framework or the
relevant bond documentation for such bonds regarding the use of proceeds and its purchase of bonds
should be based upon such investigation as it deems necessary. JBIC has set out its intended policy andactions in this Framework in respect of the use of proceeds, project evaluation and selection,
management of proceeds and reporting, in connection with JBIC Green Bonds. However, it will not be
an event of default or breach of contractual obligations under the terms and conditions of any suchbonds if JBIC fails to adhere to this Framework, whether by failing to fund or complete Eligible Projects
or by failing to ensure that proceeds do not contribute directly or indirectly to the financing of the
excluded activities as specified in this Framework, or by failing (due to a lack of reliable information
and/or data or otherwise) to provide investors with reports on uses of proceeds and environmental
impacts as anticipated by this Framework, or otherwise. In addition, it should be noted that all of the
expected benefits of the Eligible Projects as described in this Framework may not be achieved. Factors
including (but not limited to) market, political and economic conditions, changes in government policy(whether with a continuity of the government or on a change in the composition of the government),changes in laws, rules or regulations, the lack of available Eligible Projects being initiated, failure tocomplete or implement projects and other challenges, could limit the ability to achieve some or all of
the expected benefits of these initiatives, including the funding and completion of Eligible Projects.
Each environmentally focused potential investor should be aware that Eligible Project may not deliver
the environmental or sustainability benefits anticipated, and may result in adverse impacts. This
Framework does not constitute a recommendation regarding any securities of JBIC or any affiliate of
JBIC. This Framework is not, does not contain and may not be intended as an offer to sell or asolicitation of any offer to buy any securities issued by JBIC or any affiliate of JBIC. In particular,
neither this document nor any other related material may be distributed or published in any jurisdictionin which it is unlawful to do so, except under circumstances that will result in compliance with any
applicable laws and regulations. Persons into whose possession such documents may come must informthemselves about, and observe, any applicable restrictions on distribution. Any decision to purchaseany bonds should be made solely on the basis of the information to be contained in any offering
document provided in connection with the offering of such bonds. Prospective investors are required tomake their own independent investment decisions.

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