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Support for Environmental Conservation and Improvement

Efforts for Environmental Conservation and Improvement in OECOs

(1) Past Assistance for Environmental Projects

JBIC has placed priority on conserving and improving the environment in Basic Strategy of Japan's ODA Loan. Accordingly, JBIC is enhancing and expanding financial provision for projects that contribute to environmental improvement and pollution control (environmental projects) in the borrowing countries. Since 1995, lower interest rates have been offered to the ODA loans financing environmental projects (standard environmental interest rates). And in September and December 1997, they were further enhanced by the introduction of more concessional interest rates for the projects that address global environmental issues and pollution control (special environmental interest rates). These measures have enabled developing countries to implement environmental projects with more concessional terms than those applied to ordinary ODA loans and provided an increased incentive to improve the environment and control pollution. These and other special interest rates were streamlined into a single set of preferential terms in July 2002, and the simplified preferential terms continue to apply to such environmental subsectors as forest conservation and afforestation, pollution control, energy saving and resource conservation, conservation of the natural environment, and new and renewable energy. (See here for the areas where preferential terms are applicable.)

(2) Commitments to Environmental Projects in the Last Five Years (L/A basis)

Fiscal YearLoan Amount*
(Yen billion)
As a Ratio to
Total ODA Loans
Number of
Projects
2003337.057.4%21
2004480.862.2%24
2005250.844.0%21
2006364.247.7%36
2007354.839.4%25

*Loan Amount for environmental component

  • Commitments to environmental projects in FY2007 are listed.
  • Commitments to environmental projects before FY2006 are available by searching here.

(3) JBIC's Approach to Supporting Environmental Efforts;

quotation from Basic Strategy of Japan's ODA Loans

  • 1) In the area of global environmental issues, we will provide assistance to a) "global warming countermeasures(*1)" These include measures to control and reduce greenhouse gases, such as reusable energy and energy saving efforts (including assistance to use such Kyoto mechanism as CDM and JI(*2) and adjustments to adverse impact of climate changes (including climate disaster countermeasures). We will also offer assistance to b) "preservation of natural environment," which includes maintenance of nature reserves, forest maintenance and management, desertification countermeasures, and natural resource management.
  • 2) We will also place high priority on assistance to environmental improvements and pollution prevention, such as countermeasures on air pollution, water contamination and waste management, while paying attention to prevention or reduction of negative environmental and social impact of infrastructure improvement so as to ensure co-existence of environment and development. In providing such assistance, we will try to actively use Japan's technology and experience concerning environmental improvement and pollution protection, and also strengthen our coordination with Japan's local autonomous bodies.
  • (*1) Anti-global warming projects in the last five years are listed in the Appendix.
  • (*2) CDM: Clean Development Mechanism, JI: Joint Implementation

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