Revisiting Japan's Sustainable Growth Strategy

Japan has positioned itself as a global leader in transition finance through its GX (Green Transformation) strategy. It has committed to net-zero by 2050, launched a sovereign Climate Transition Bond, and set out a roadmap to decarbonise its economy while revitalising regional industry.

Unfortunately, while undertaking this transition, Japan is doubling down on fossil fuel imports, even as global tensions make this strategy increasingly risky and outdated. Due to numerous geopolitical challenges, relying on imported fossil fuels has become a national security vulnerability, not just a climate risk. 

Given these challenges, in 2024 Climate Bonds published a briefing identifying three key opportunities for Japan to establish itself as a global leader in climate action. Our newest briefing revisits developments from the first six months of 2025 and reflects on how ongoing geopolitical risks further highlight Japan’s need to address its fossil fuel dependency. 

This new report, supported by the Global Methane Hub, lays out how, with the right approach, strategic investment in clean energy would offer Japan a pathway to energy security and strengthen its national resilience, with the added benefit of enabling the country to meet its climate goals and complete its ambitious national transition plan.