Defining Transition Finance: Exploring Its Purpose, Scope, and Credibility
After analyzing different transition finance frameworks, we outline three key areas of debate that need to be addressed to find a common definition.
An official side event of the Climate Innovation Forum during London Climate Week.
The topic of transition finance took center stage at COP28 and continues to be a hot topic at climate finance events. Hosted by RMI and UK Finance, this event is the culmination of a year-long collaboration on the topic, featuring experts and leading practitioners sharing what they have learned about the opportunities, challenges, and frontiers of innovation in transition finance. The event will also launch RMI’s Transition Finance Resource Hub, where practitioners can find case studies, how-to guides, and practical resources to help financial institutions turn transition finance ambition into action.
After analyzing different transition finance frameworks, we outline three key areas of debate that need to be addressed to find a common definition.
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.
We call on the financial sector to take urgent action to unlock transition finance, and we acknowledge the key role that governments, issuers, and borrowers must play.