Japan has provided a large amount of aid to developing countries, but most of the aid has focused on large-scale infrastructure development such as dams, roads, and power plants, which has sometimes caused serious environmental destruction and social problems. Similar problems have also been pointed out in private sector projects where loans are provided to encourage Japanese companies to expand their business overseas.

Japanese export credit agencies (ECAs) (Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI)) and development aid agencies (Japan International Cooperation Agency (JICA)) have not been fully equipped with mechanisms and implementation systems that take social and environmental aspects into consideration. FoE Japan, based on its research and analysis of individual projects, have been calling for government agencies to develop and fully implement high-level environmental guidelines.