Photo/Illutration The Iwate prefectural government’s office (Kazumasa Sugimura)

MORIOKA--Iwate Prefecture, well-known for its striking coastline, is moving to protect its natural environment and marine resources with plans to raise 5 billion yen ($35.8 million) in funds exclusively for eco-friendly purposes through securities, making it the first local government in Japan to do so.

The prefectural government said June 2 it will target institutional investors--cities, towns and villages, as well as corporations--for the green and blue bonds to be issued in July.

It will be the first time for a local government to issue blue bonds intended for oceanic environment preservation, Iwate prefectural authorities said.

“How to utilize marine resources is an important theme for Iwate, which has a lengthy coastal line,” said Iwate Governor Takuya Tasso. “We will be securing a stable revenue source.”

Regional authorities nationwide have resorted to green bonds to secure funds at lower interest rates. 

The interest rate of the envisioned eco-friendly bonds will be determined in July, along with other details.

The funds are to be used to help fight climate change and for programs to conserve ocean resources, officials said.

River improvement work and the introduction of energy efficient facilities at prefecture-owned properties are eyed in the green category for addressing global warming and other environmental issues.

The blue division for oceanic resource preservation will cover not only the creation of seaweed beds for aquatic creatures and plants but also the construction of training boats for fisheries high schools.

Of the 5 billion yen, between 1 and 2 billion yen is expected to be allocated to the blue initiative. The funds will basically be spent by the end of each fiscal year.

Buying into the security program can be done for at least 10 million yen. The bullet bonds will become redeemable in five years.

A merit for investors will be that they can publicize their commitment to environmental problems through the project.

“They (investors) will extend support to Iwate Prefecture’s environmental policy,” said Tasso. “I want them to engage in economic activities while contributing to society.”

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