The Glasgow Financial Alliance for Net Zero (GFANZ) is asking the market for feedback on plans to create more detailed definitions for transition finance.
Last year, the influential body announced that investors could credibly support the climate transition by allocating their capital to solutions, climate-aligned companies and assets, or companies and assets with a serious commitment to transition. They could also invest in the timely phase-out of polluting assets, such as coal plants.
Now GFANZ wants to flesh out those four labels to create “common definitions of transition finance” and find a way to calculate the impact of such investments on global emissions.
“Creating consistent definitions that are applicable across markets and sectors will help to scale transition finance to ensure real-economy decarbonisation, help financial institutions independently identify their risk exposure and the investment opportunity ahead,” it said in a statement....
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