Team Sapporo-Hokkaido launches Green Finance Framework to boost Regional GX investments

New framework referred Climate Bonds’ criteria and EU Taxonomy to accelerate sustainable investment and regional revitalisation in Japan 

 Highlights: 

1. The framework introduces Green Premium, Green and Transition label for both ambitious decarbonization, transition and local revitalization, the first of its kind globally. 
2. It defines sector-specific criteria for eights strategic industries: offshore wind power, hydrogen, data centres, storage batteries, next generation semiconductors, synthetic fuels, submarine DC and electricity and hydrogen transport ships. 
3. Developed with support from Climate Bonds and provided a third-party evaluation by DNV, the framework set the evaluation label referred the Climate Bonds Standard and EU Taxonomy to strengthen transparency and investor confidence. 

London/Tokyo, October 27th, 2025 – Team Sapporo-Hokkaido has launched the Team Sapporo-Hokkaido Green Finance Framework, a landmark initiative designed to promote investment in Japan’s Green Transformation (GX) and enhance the global appeal of Hokkaido as a centre for sustainable finance. 

By introducing clear, quantitative criteria, the framework enables domestic and international investors to make informed decisions based on objective information, strengthening the reliability and attractiveness of the region’s green investment market. 

Integrating international best practice and local priorities 

The framework introduces three innovative layers of assessment: 

• Green Premium: Complies with international green standards and shows strong improvements across multiple environmental areas.
• Green:  Aligned with international standards, contributing to decarbonisation and reduced environmental impact. 
• Transition: Uses the best available technologies and aims for future alignment with international standards. 
• Together, these elements form the world’s first comprehensive framework designed to achieve both environmental and regional sustainability. 

 Details are set out in the “Master Framework” and individual “Sub-frameworks,” providing technical standards and methodologies for each sector. At the start of implementation, the Climate Bonds Standard (CBS) will be adopted as the reference standard for the only following areas where CBS criteria are already established: offshore wind, hydrogen, and battery storage. 

Aligned with Climate Bonds and EU Taxonomies 

Developed with the support of Climate Bonds and provided a third-party evaluation by DNV as an independent external reviewer, the framework integrates Climate Bonds’ internationally recognised ※Climate Bonds Standard and the EU Taxonomy into its structure. 

This alignment will help channel capital into high-impact green investments, stimulate the growth of green industries and regional economies, and contribute to Japan’s broader climate and energy security goals. 

※Reference areas under the Climate Bonds Standard (CBS): Offshore wind, hydrogen, and battery storage are included as reference areas, while other sectors are currently excluded as no criteria have been established yet. 

Katsuhiro Akimoto, Mayor of Sapporo 

"We have established a new finance framework, the TSH Green Finance Framework, to provide objective information for domestic and international stakeholders to indicate the decarbonization contribution and to show the degree of coexistence with the local community of each project. With this framework, we aim to promote sustainable Green Transformation (GX) and Digital Transformation (DX) in Hokkaido, expand the financial functions that support them, and accelerate regional revitalization. 

We are grateful to Climate Bonds Initiative for their invaluable assistance in the creation of this finance framework. We look forward to our partnership to contribute to the decarbonization of the world together." 
 

Sean Kidney, CEO, Climate Bonds Initiative 

“Japan faces an enormous challenge with energy security — in a time of geopolitical tensions Japan still imports 83% of its energy. Hokkaido offers a unique opportunity to scale up renewable energy, create local jobs, strengthen energy security, and accelerate climate action, a true win-win for the region and for Japan. The Sapporo-Hokkaido Green Finance Framework provides clear, transparent guidance on how investment can contribute to that green future. It stands as a model for how regional economies can integrate decarbonisation with economic revitalisation, positioning Sapporo-Hokkaido as a hub for GX finance and sustainable growth.” 

This framework builds on the joint statement announced in December 2024 between Climate Bonds, the Hokkaido Government, and the City of Sapporo, committing to promote green transformation (GX) and regional revitalisation across Japan. 

 Read the joint statement here 

You can find the framework here: https://tsh-gx.jp/en/staticpage/tsh-gffw/  

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 Contact for interviews and further information:  

 Luiza Mello 

Communications Senior Specialist, Climate Bonds Initiative 

luiza.mello@climatebonds.net 

About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organization mobilizing global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here. 

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