An Overview of Approaches to Transition Finance for Hard-to-Abate Sectors

Year Published
2023
2023
This report provides an overview of various approaches toward transition finance intended to enhance credibility while addressing their challenges. It focuses on key methods aimed at enhancing transparency regarding decarbonisation and low-carbon activities, particularly within hard-to-abate sectors. Transition activities are viewed as a crucial part of the efforts to reduce GHG emissions to zero, with a primary focus on sectors that are emissions-intensive and challenging to decarbonise. The report includes examples of: ● Transition finance and labelling approaches in capital markets ● Practices to promote credible transition plans for emissions-intensive companies ● Taxonomies for transition activities in hard-to-abate sectors ● Transition finance from the perspective of financial institutions
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