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Finance

Unpacking Five Key Barriers to Transition Finance

While money is increasingly flowing to climate solutions and clean technologies, financing emission reductions in high-emitting and hard-to-abate sectors faces challenges to ensure credibility and real economy impact. Here we outline five key barriers to transition finance.

Why Sectoral Target-Setting Finance Frameworks Are Key to Industrial Decarbonization

Setting climate targets to reduce financed emissions is now the norm for most of the banking sector. Many large banks are now eager to shift focus from target-setting to measuring and deploying transition finance. But — while mobilizing capital for the transition is necessary — laying the right foundation through target-setting is still critical if banks are to not only reduce financed emissions but also finance emissions reductions.