Transition Finance – Sustainable Finance Briefing Paper Series

The briefing examines the role of transition finance in aligning economic activity with global climate goals. Transition finance supports entities—particularly in high-emission sectors—that are not yet green but are committed to decarbonisation in line with net-zero targets. The document highlights key challenges facing this type of finance, including credibility concerns, inconsistent definitions, limited data, and the risk of greenwashing. It calls for clearer guidance, robust standards, and transparent disclosures to strengthen market integrity and accelerate the flow of capital toward credible transition efforts.