Climate change -- which has increasingly been regarded both at home and abroad as an issue that requires innovative changes -- could exert an extremely large impact on developments in economic activity and prices as well as financial conditions from a medium- to long-term perspective. Thus, it is relevant to the Bank's mandate to achieve price stability and financial system stability.
From this perspective, the Bank, at the Monetary Policy Meeting held in July 2021, decided on the preliminary outline of a new fund-provisioning measure to support financial institutions' efforts on climate change (Chart 8). In this measure, the Bank takes the approach of providing funds to financial institutions for investment or loans they make to address climate change based on their own decisions.