case of Japan, which is rather mature, the economic situation energy strategy is different. In the case of Japan and China, they have their own strategy for a transition target process, and they must try to different ways. The goal is same, 2030 or 2050 net zero target strategy is same, but the route is a bit different to the countries I think it’s a natural way to think. Katsuki sees Japan’s government continuing to be important in establishing standards in the bond market. He explains, “The Ministry of Environment and Ministry of Economy, Trade and Industry organize Japan’s strategy and regulations for transitions bond markets. This is what we want to export to ASEAN countries. Government is in a situation to make guidance and provide subsidies and that could be a huge driving force for expanding the Japanese market. The Japanese GSSS (Green, Social, Sustainability and Sustainability-Linked) bonds market is fifth-largest in the world last year. And the number of issuers is almost the same as in the US, making it number one. Many issuers are joining this market, which is becoming, how can I say, a very mature market. One of the main reasons for this achievement is the commitment of the Japanese government.” United States-Japan Foundation Jacob Schlesinger offers a perspective on Japan’s historical relationship with the United States. At a recent conference sponsored by US-Japan Foundation and Stanford University, participants were asked if they believed Japan would “hold or fold.” Most attendees believed that Japan would hold. 10 Schlesinger said, “Japan is probably more than any country in the world dependent on the United States, which is Japan’s only official ally. That said, when Trump pulled out of the Trans-Pacific partnership negotiated by George W. Bush and Barack Obama, everyone assumed it was dead without US taking the lead ... Prime Minister Abe had courage and said, ‘No, we believe in this. We’ve invested in it. We’ve paid a lot of political capital for it. We are going to keep it alive.’ And they did.” 11 The breaking point under the current Trump administration is unknown. There’s a lot of uncertainty about how much Japan can rely on the US as a reliable partner. Schlesinger acknowledged that “once Japan is encouraged to start looking for other partners, you never know where that leads.” The US-Japan Foundation is also beginning actively to support an Impact Finance movement in Japan that will leverage new philanthropic resources and leverage high-net- worth individual donors to help build the capacity of Japanese foundations. For example, the foundation has started by giving grants to organizations looking to spread impact investing in Japan, such as the Global Impact Investment Network, and is experimenting with modeling social finance tools, such as giving loans to some Japanese nonprofits instead of grants. 205
Ten Years in the Making
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