Japan’s first environmental bond attracts major investor interest: Japan’s Kyushu Electric Power raised YEN 30 bn (USD 191 mn) in the country’s first environmental bond set to finance nuclear transition projects, Bloomberg reports. The issuance came in two tranches, with the five-year tranche attracting three times as much demand as the amount raised, and the 10-year tranche attracting 1.1 times the amount raised. Kyushu Electric will dedicate the funds to refinancing nuclear investment, including in emergency response centers.

Second time's the charm: The company had attempted to launch a similar bond before but struggled to garner interest from investors who still remember the Fukushima meltdown. Interest in nuclear energy has increased as Japan has set a target of becoming carbon neutral by 2050, although the country still has to tackle the issue of where to dispose of radioactive waste.

The EU has approved the Net Zero Industry Act to ensure the bloc produces 40% of its solar panels, wind turbines, heat pumps, and other clean technologies by 2030, Reuters reports. The law — set to take effect in June or July — is designed to enhance the EU's manufacturing capabilities in clean tech, reducing reliance on China and countering US green subsidies. The act mandates faster permitting processes and prioritizes sustainability and supply chain resilience in public procurement.

The bloc wants to boost its presence in the global market: The EU targets a 15% share of global clean tech production by 2040, though achieving this is particularly challenging in the solar sector, as EU manufacturers currently supply less than 3% of all EU solar panel deployments.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Productive 1Q bumps up Italy’s solar capacity to 32 GW: Italy's solar power capacity increased by 1.7 GW in 1Q 2024, reaching a total of 32 GW. This growth was driven primarily by a surge in large-scale solar projects, with new projects over 1 MW in size increasing by 373% y-o-y and mid-sized photovoltaic projects on commercial and industrial rooftops rising 106% in power output. (Reuters)
  • EU + Australia want to diversify critical mineral supply chain: Australia and the EU have signed an agreement to enhance cooperation and investment in critical minerals and reduce reliance on Chinese materials for high-tech and green manufacturing. “Concrete actions” will be developed over the next six months. (Bloomberg)
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