TOKYO, JAPAN Japan Airlines becomes the first airline to issue the world’s first Transition Bonds in the aviation industry.

Transition Bonds, a category of SDG Bonds, are corporate bonds issued by companies that have been developing strategies to achieve long-term goals that aligned with the Paris Agreement and will allocate the proceeds to initiatives that support the transition towards a carbon-free society.

The Bonds are not only its first SDG Bonds but also the world’s first Transition Bonds in the aviation industry. The Bonds were also selected by Japan’s Ministry of Economy, Trade, and Industry (METI) as a model example for its 2021 Climate Transition Finance Model Project1, marking the first initiative of a Japanese airline selected. In addition, JAL has acquired a second party opinion on the alignment of its framework with the existing principles and guidelines from Sustainalytics, an external review provider operating worldwide.

JAL will make full use of the net proceeds of the Bonds to advance the transition to carbon-free operations in its air transport business and to redouble its efforts to ultimately achieve decarbonization.