Japan hopes climate transition bonds draw more foreign investors

TOKYO -- Japan successfully finished selling the first batch of the world's first sovereign climate transition bonds on Tuesday, but attracting foreign investment remains an agenda for the nation to lead the market for the nascent financing tool, according to experts.

The so-called GX bonds -- from the Japanese shorthand for "green transformation" -- are a type of transition bonds that are aimed at channeling more money into activities that do not narrowly qualify as "green" but are expected to help create decarbonized, climate-resilient societies by cutting carbon emissions in the long term.