Transition finance focuses on the dynamic process of becoming sustainable, rather than providing a point-in-time assessment of what is already sustainable, to provide solutions for a whole-of-economy decarbonization, and to decarbonize the most polluting and hard-to-abate industries today.
This guidance sets out the elements of credible corporate climate transition plans, in line with targets of the Paris Agreement, based on existing frameworks and initiatives and elaborates on additional points that are not yet present or largely underdeveloped. It suggests that credible transition plans should integrate and make use of existing tools in the areas of sustainable and transition finance and responsible business conduct.
The guidance also provides market actors, policymakers and regulators with a comprehensive overview of existing transition finance approaches, identifying the main challenges and solutions to support necessary improvements in the applicable enabling conditions.