Scheme

What we do…

What we do…

For business operators who view decarbonization as a new growth opportunity, JICN funds a variety of businesses that contribute to carbon neutrality.

Contents

JICN’s investment and lending activities are based on support criteria stipulated by the Ministry of the Environment (MOE) in line with the Act on Promotion of Global Warming Countermeasures.
Our Investment Rules define the detailed application of the support criteria and the process for investment decisions, disbursement of funding, and exit.

1

Overview of JICN activities and functions

JICN implements investment and financing with capital from the Government’s Fiscal Investment and Loan Program(FILP) and private-sector investment to provide investment to various businesses involved in decarbonization. We bring out the strengths in capital, know-how, and human resources of various stakeholders to scale up efforts to achieve net zero by 2050, helping to ensure a better and sustainable future.

2

Investment regulation and support criteria

Our investment and financing must meet the requirements of the below items (1) to (4). A comprehensive analysis of these items is to be completed when making decisions about investments.

Application of support criteria (Investment Regulations, Article 2)

Positive policy implications

  • (1) Reduction/removal of GHG emissions * Projects to make a transition in the mid- to long-term need to be consistent with Japan’s transition finance policies.
  • (2) Positive impacts on society and the economy
  • - Solutions for the local economy/society
  • - Model case for the decarbonization of local communities
  • - Creation and spread of new technologies and business models
  • - Expansion of Japanese technology and/or business models into overseas markets
  • - Environmental benefits such as biodiversity conservation and enhancing circularity

* The above are shown as examples and are not an exhaustive list.

Initiatives by the private sector

Equity investment by the private sector to be larger than that of JICN, etc.

Fair profitability

Appropriate return for the JICN investment based on the risk profile, etc.

Consensus building in the local
community, environmental
conservation, and safety

Expert review may be required, etc.

3

Target areas for investment and financing

  • *Some may apply to more than one area.
  • *This only shows examples and is not an exhaustive list.
  • *The classification may be revised according to future activities.
Direct investment
Classification Code Examples
Classification Energy conversion Code、Examples Fuel Hydrogen, ammonia, methanation, SAF, e-fuel, black pellets
Power generation
(renewable energy)		 Solar, wind, biomass, geothermal, hydropower, waste
Power generation
(except renewable energy)		 Transitional projects (e.g. mixed combustion of biomass and ammonia in thermal power generation, fuel cells), energy harvesting
Energy storage, heat utilization Storage batteries, CAES, underground heat, heat supply, utilization of unused heat
Power transmission and distribution Smart grid, inertial force securing, HVDC
Manufacturing and
industrial sector 		Materials, raw materials New materials, biomaterials, energy-saving building materials
Industrial processes Steel, chemical, cement, paper, glass
Equipment and device manufacturing Manufacture of renewable energy/energy saving/storage equipment, CFC-free equipment, power devices, IoT devices
Buildings, facilities ZEB/ZEH, energy saving of business facilities (offices, distribution facilities, etc.)
Agriculture, forestry, fisheries Supercharged plants, vertical farming, alternative foods, forest maintenance, aquaculture
Services and data Transportation, mobility EV (land/sea/air), railways, MaaS, carbon neutral airports/ports, logistics efficiency, cold chains
Energy management Energy saving/storage, ERAB, DR, VPP, DER, HEMS/BEMS/FEMS/CEMS
Data, DX AI, digital twins, behavior change recommendations, GHG emissions calculation and visualization
Finance, insurance Fintech services related to decarbonization
Carbon credits Credit transactions, authentication/verification
Recycling resources and
improving resilience 		Reuse/Recycle/ Upcycle Recycling of solar panels and batteries, bottle-to-bottle recycling, sustainable fashion, food loss reduction
Resilience Water stress response, Eco-DRR, off-grid, micro-grid
Carbon sinks, carbon
utilization and storage 		Carbon sinks Forest, ocean (blue carbon), agricultural land (soil improvement)
Carbon capture, utilization and storage CCS, BECCS, CCU, DAC
Others Others -
Direct investment
Classification Code Examples
Fund - -
4

Target business stage and use of funds

JICN mainly targets businesses in the stages after the Planning and Development stage.

Project financing

  • *JICN provides support not only for new development, but also for renovation and conversion of existing facilities for decarbonization.
  • *Refinancing (replacing or restructuring of existing loans) may also be eligible for our support.

Corporate financing

JICN also invests in start-ups that are actually contributing to decarbonization.

  • *JICN can also provide limited partnership investments that complement the functions of us.
5

Financing schemes

JICN provides preferred stocks, subordinated loans and bonds, and other mezzanine financing, as well as common stocks, etc. in response to various business risks and business operators’ financing needs.

Main forms of business

  • - Project financing for special purpose companies (SPC)
  • - Investment in start-ups that are actually contributing to decarbonization(common stocks)

Capital structure for decarbonizing businesses

  • * The above shows financing for SPC but we can also provide corporate financing.
  • * This diagram features a general financing structure for various businesses for reference purposes.
    The actual financing structure and form of financing provided by JICN will be selected and arranged from mezzanine financing or equity financing according to the needs and situation of each business. We can also provide a combination of mezzanine financing and equity financing.
    (In such cases, we will examine business schemes, financial support needs, timelines, and other fund sources and factors to determine whether a potential combination is appropriate.)
6

Investment process

Project review
(Investment Regulations, Article 4)

Review of documents, etc.

  • - Alignment of business and policy objectives
  • - Scale of investment
  • - Project details, including location and timeline
  • - Investment recovery plan
  • - Business scheme/organization
  • - Financing scheme, etc.

Third party expert review as required

Investment decision/Conclusion of contract
(Investment Regulations, Articles 5, 6)

Investment decision

  • - Review by MOE and relevant ministries
  • - Agree on investment with the Decarbonization Committee
  • - (in principle) Public disclosure

Investment contract and its implementation

  • - Negotiate detailed conditions
  • - Conclude required contracts
  • - Start providing funding (check how it is spent)

Project management and exit
(Investment Regulations, Articles 7, 8, 9)

Project management and monitoring

  • Regularly check the business value and the extent to which policy
    objectives have been achieved through document submissions and reports

Project exit

  • - Consult with business owner
  • - Review by MOE and relevant ministries
  • - Decide selling off value, buyer, timeline, etc.
  • - Agree on exit with the Decarbonization Committee

Documents​

Company Profile​

Investment Regulation & Support Criteria（Japanese）