Press Release: Two JBIC bondholders divested from JBIC bonds, five significantly reduced holdings – CaLPERS, the largest public pension fund in the US, decreasing holdings to zero –
November 10, 2025
Press Release:
Two JBIC bondholders divested from JBIC bonds, five significantly reduced holdings
– CaLPERS, the largest public pension fund in the US, decreasing holdings to zero –
Japan Center for a Sustainable Environment and Society (JACSES)
On November 10, Japan Center for a Sustainable Environment and Society (JACSES) released a Briefing Paper entitled “Two financial institutions divested from JBIC bonds, five reduced significantly – Risks of continuing fossil fuel support contrary to the Paris Agreement become apparent -” (PDF). It was revealed that at least two financial institutions have divested their holdings in the Japan Bank for International Cooperation (JBIC), which continues to provide substantial support for fossil fuels, while at least five have significantly reduced their holdings.
A comparison of data on institutions holding JBIC bonds at the time of the August 2024 survey and the August 2025 survey indicates that the California Public Employees’ Retirement System (CalPERS) and the State of Wisconsin Investment Board reported zero holdings of JBIC bonds. Furthermore, the Minnesota State Board of Investment (MSBI), Fonds de Compensation de la Sécurité Sociale, SICAV-FIS (FDC), Massachusetts Pension Reserves Investments Management, Colorado Public Employees’ Retirement Association (Colorado PERA), and Florida State Board of Administration (FSBA) reduced their holdings by 25% or more. CalPERS, the largest public pension fund in the US, held approximately USD108 million worth of JBIC bonds as of August 2024, ranking third in terms of holdings at that time. However, it was confirmed that its holdings had fallen to zero by the time of the August 2025 survey.
The Japanese government has committed that “we commit to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country consistent with a 1.5°C warming limit and the goals of the Paris Agreement.” However, since 2023, JBIC has concluded financing agreements for eight fossil fuel projects totalling USD 3.5 billion (JPY 532 billion equivalent). The likelihood of continued support for multiple fossil fuel projects, including the Cameron LNG expansion, the Papua LNG project, and the Alaska LNG project, where concerns persist regarding risks of human rights violations against local indigenous peoples and environmental destruction, is increasing.
JBIC has not been a member of the Net Zero Export Credit Agencies Alliance (NZECA), an initiative of export credit agencies committed to achieving carbon neutrality in their operational portfolios by 2050, and has not set GHG reduction targets for its investment and financing portfolio by 2030. Currently, the UK, France, Canada, Spain, Sweden, Finland, Denmark, Kazakhstan, and the UAE are members of the NZECA. CESCE, the Spanish export credit agency and a member organization of NZECA, has announced to reduce its exposure to the hydrocarbon industry by 75% by 2035 (from 2020 level), UK Export Finance (UKEF) has announced to reduce its absolute financed emissions from Scope 1, 2 and 3 in oil and gas (amount at risk basis, tCO2e) by 75% by 2030, from 2021 level. It will also reduce the financed emissions intensity of power including renewables (amount at risk basis (tCO2e/£) by 58% by 2030, from 2021 level.
The report calls upon institutions holding JBIC bonds to engage with JBIC to end financing new fossil fuel projects, disclose financed GHG emissions from its investment portfolios, and publish a 2030 target for financed emissions consistent with the 1.5°C pathway. Should these targets not be achieved after a specified period, the report urges divestment from JBIC bonds, and if these are not achieved after a certain period of time, to divest from the JBIC bonds.
Contact:
Japan Center for a Sustainable Environment and Society (JACSES)
Yuki Tanabe
tanabe@jacses.org
Marika Kita
kita@jacses.org
