Ministry of Environment of Japan adopts Project Frame’s methodology
The Ministry of Environment of Japan (MOE) has adopted Project Frame’s methodology through their newly released Guide to Calculating and Assessing the GHG Impact of Climate Tech for Investors and Startups.
The guide is heavily based on Frame’s inaugural pre-investment methodology. It aligns with our forward-looking approach to potential and planned impact and will be used by the MOE for impact diligence for their new climate fund.
“We hope this practical guide will assist investors in evaluating potential impact of climate tech companies during due diligence, as not many methodologies are currently available in Japan,” said Minako Kageyama, Deputy Director of Green Finance at the Japanese Ministry of the Environment.
“Companies would also benefit from the impact calculation methods outlined in the Guide, as they provide a clearer understanding of their business competitiveness and a stronger foundation for communicating their future value.”
Project Frame’s Pre-Investment Considerations was released in April 2023, based on consensus built by more than 40 leading investors and thought leaders to provide guidance for early-stage investors looking to assess the future GHG impact of climate solutions. To further reduce barriers to adoption, Prime Coalition, Frame’s convener, also recently updated the CRANE tool in line with Frame’s forward-looking assessment guidance.
Frame has since released Project Frame Methodology: Evaluating Greenhouse Gas Impact for Early-Stage Investments in December 2024. This updated guidance extends into backwards-looking realized avoided emissions impact and provides further discussion on topics such as attribution and additionality.
