BETTER FINANCE, a leading advocate for investor rights and financial transparency, has released a position paper on transition investing, emphasizing its importance in achieving climate neutrality in the EU. The paper stresses the need for credible, transparent transition plans to avoid greenwashing, advocating for structured engagement over divestment in carbon-intensive industries to drive the shift to net zero. This comes against the backdrop of the European Commission's non-binding "Recommendation on facilitating finance for the transition to a sustainable economy," highlighting the ongoing challenges in Europe's sustainable finance landscape. BETTER FINANCE calls for a unified engagement mechanism to ensure consistent practices and evaluation, aiming to effectively phase out high-emitting sectors while preventing the creation of stranded assets or their transfer to non-European entities.