GovWire

The government announced in the 2023 Green Finance Strategy that it would commission a market-led review into growing transition finance in the UK, to look at how to support companies here and abroad to continue to access the capital they need to decarbonise and deliver our net zero ambitions.

The Review has now been commissioned by Treasury Lords Minister Baroness Vere and Department for Energy Security and Net Zero Minister Lord Callanan, and is led by Vanessa Havard-Williams.

It will explore how best to create the conditions for:

• scaling transition focused capital raising with integrity. We want to grow the UK market for new, innovative transition finance services, which should be designed as attractive, investible instruments to unlock long term capital (such as sustainability linked debt and transition bonds)
• maximising the opportunity for UK based financial services to develop, structure and export high integrity transition finance services
• positioning the UKs professional services ecosystem as a global hub - supporting this innovative activity and ensuring market confidence (legal, accountancy, consultancy, data and analytics, skills and education)

The Review Lead will be supported by a panel of expert advisors and a secretariat in partnership with the City of London Corporation.

It will report back to government by July 2024.

We have published the Terms of Reference for the Review.

Background

Transition finance refers to financial products and services that support higher emitting companies and activities to decarbonise over time. These instruments are generally used by companies seeking to reduce greenhouse gas emissions and should be part of a credible decarbonisation pathway that is consistent with global climate goals.