In light of ongoing developments in the transition finance landscape, including taxonomies, frameworks, disclosure standards and financial transactions, there is a need for ongoing assessment of credibility and environmental integrity in transition finance and corporate transition planning. As transition finance takes further shape, it will be important to assess evolving transparency challenges, and the nature and extent of gaps between current practices and what transition finance would need to look like if it were consistent with Paris Agreement climate mitigation objectives.
An environmental integrity focus in this area can inform policymakers’ development of mandatory frameworks and markets for financing emissions-intensive sectors’ transition to net-zero emissions, and to inform and influence broader market developments, to encourage greater transparency and reduce greenwashing risks.
