Japan's Central Bank today unveiled its first Climate Change Investment Fund to work towards its new aim for carbon neutrality by 2050.
After a two-day political conference, the Bank of Japan said that the scheme, due to be launched this year, will follow an existing program aiming to promote economic growth more generally.
"The challenges relating to climate change could have an extraordinarily significant influence from a medium to long-term perspective on changes in economic activities and pricing and also on financial circumstances."
"The Bank believes that supporting the work of the private sector in the areas of central bank matters will contribute in the long term to stabilization of the macroeconomy," it added.
The financial help of pandemic afflicted companies also extended the day following the government's approval to lift an emergency virus in nine prefectures including Tokyo, six months until the end of March 2022.
Less than two weeks before the postponement of the Olympic Games in Tokyo will be laid down in the city and six other districts until 11 July.
Extension of the support for companies is highly anticipated, said SuMi TRUST economist Naoya Oshikubo.
"Many firms in several prefectures in Japan continue to suffer financially from the state of emergency Covid19, along with the poor immunization rate in the country," Oshikubo remarked before a policy decision.
"The extended financial assistance package would benefit small and medium-sized companies in Japan extremely successfully, as demand for company financing support is considerable," he noted.
Japan's roll-out of vaccines started very slowly, but in recent weeks has gone increasing. More than 6% of the population today is fully immunized.
The Bank of Japan reiterated that the Bank "would examine closely the implications of Covid-19 and, if appropriate, will not hesitate to adopt additional easing measures."
Previous official information revealed Japan's first slightly higher consumer prices in May over the first 14 months, due mainly to an upturn in energy prices.
Despite a barrier of stimulus and monetary easing programs, Japan has had many struggles to achieve a 2% inflation objective that is considered essential to kick off the third world economy.
In October, Prime Minister Yoshihide Suga set Japan a 2050 carbon-neutral deadline which substantially strengthens its commitments to climate change.
In reaction to the Fukushima nuclear energy accident in 2011, the government has struggled to minimize carbon emissions once reactors are shut down.
