Japan has confirmed its intention to issue the world’s first transitional sovereign bonds and media outlets reported that documents for the submission had been submitted to a government committee on Tuesday to detail the mechanism for issuing what are known as “Green Economic Transformation Bonds” or “G”. XBONDS “is expected to provide up to 20 trillion yen ($139 billion) to the Japanese government.
The government aims to issue these bonds during the second quarter of the current fiscal year, which began on April 1.
The Government will use the rollout to invest in areas such as modifying traditional natural gas or solar power plants for hydrogen or ammonia so that there are no carbon emissions, a proposal that raises foreign investors’ concern that the rules of the green economy may circumvent and that traditional power plants continue to operate on the pretext of being developed and transformed into green plants.