Transition finance key to address climate change

Transition finance, which provides financing to high carbon-emitting industries, should be part of a broad range of innovative financing options to address climate change. Addressing climate change and taking action to overcome its impacts and effects remain an urgent concern worldwide. There has been a consensus that the financial sector should go beyond supporting purely green activities to effectively transform the existing carbon emitters.

Realization of transition finance is crucial for combating climate change.

Transition finance is a concept which allows financial services to be provided for high carbon-emitting industries — such as coal-fired power generation, steel, cement, chemical, paper-making, aviation and construction — to fund the transition to decarbonization.