Our latest position paper outlines investor perspectives on concept of transition finance.
Many investors have articulated support for a concept of transition finance that promotes capital allocation and management of assets in line with the transition to a low-carbon economy. But at present, the lack of a robust and consistent definition is inhibiting this capital flow.
This position paper seeks to outline the investor perspective on the different types of transition finance that can exist, how they can be distinguished, and what is needed to give confidence that an investment can credibly be understood as ‘transition finance’. The paper does not seek to establish specific definitions or guidance although this may be explored in future work.
The position paper covers the following aspects:
- The need for a robust conceptualisation of the term ‘transition finance’ and initial investor perspectives on what it does and does not constitute.
- Several examples of the different types of transition finance that investors have encounter
