Transition finance: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add links.) |
(Add link.) |
||
| (One intermediate revision by one other user not shown) | |||
| Line 37: | Line 37: | ||
* [[Decarbonise]] | * [[Decarbonise]] | ||
* [[Emissions]] | * [[Emissions]] | ||
* [[Finance]] | |||
* [[Fossil fuel]] | * [[Fossil fuel]] | ||
* [[Green]] | * [[Green]] | ||
| Line 49: | Line 50: | ||
* [[TCFD Recommendations]] | * [[TCFD Recommendations]] | ||
* [[Transition]] | * [[Transition]] | ||
* [[Transition Finance Market Review]] (TFMR) | |||
* [[Transition risk]] | * [[Transition risk]] | ||
* [[Transition sukuk]] | * [[Transition sukuk]] | ||
| Line 54: | Line 56: | ||
== | == Other resource == | ||
* [https://www.climatebonds.net/files/reports/cbi_fincredtransitions_final.pdf How to ensure the transition label has impact - Climate Bonds Initiative] | * [https://www.climatebonds.net/files/reports/cbi_fincredtransitions_final.pdf How to ensure the transition label has impact - Climate Bonds Initiative] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Financial_products_and_markets]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Investment]] | [[Category:Investment]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:The_business_context]] | ||
Latest revision as of 03:16, 17 September 2024
Climate change - transition - financing.
Transition finance is finance to enable activities and businesses that are currently large emitters of greenhouse gases, to:
- Reduce their emissions significantly
- In alignment with the Paris Agreement
Transition finance may be available for - and applicable to - initiatives that do not qualify as fully "green", but still have a substantial and important contribution to make in transitioning from "brown" to "light brown" levels of emissions.
Relevant sectors might include fossil-fuel extraction and heavy manufacturing.
- Transition label v Green label
- "Turning to the bond market, the transition label originated to sell bonds that were difficult to market as green bonds...
- In broad terms, we propose that:
- The green label continues to be used for eligible investments in activities or entities that (a) have a long-term role to play [in the future economy] and (b) are either already near zero or are following decarbonisation pathways in line with halving global emissions by 2030 and reaching net zero by 2050.
- The transition label be used for eligible investments that:
- (i) are making a substantial contribution to halving global emissions levels by 2030 and reaching net zero by 2050 but will not have a long term role to play; OR
- (ii) will have a long term role to play, but at present the long term alignment to net zero goals is not certain."
- Financing credible transactions - How to ensure the transition label has impact - Climate Bonds Initiative
See also
- Bond
- Brown
- Climate Bonds Initiative
- Climate change
- Climate transition risk
- Decarbonise
- Emissions
- Finance
- Fossil fuel
- Green
- Green bond
- Greenhouse gas
- Net zero
- Paris Agreement
- Reputational risk
- Stakeholder
- Stranded assets
- Task Force on Climate-related Financial Disclosures
- TCFD Recommendations
- Transition
- Transition Finance Market Review (TFMR)
- Transition risk
- Transition sukuk
- World Economic Forum
