Transition Finance: Investigating the State of Play: A Stocktake of Emerging Approaches and Financial Instruments

The Organization for Economic Cooperation and Development (‘OECD’) considers emerging market developments towards the decarbonization transition pathways.

39 transition relevant capital markets instruments (e.g., Vanilla Transition Bonds, Key Performance Indicator-Linked Fixed Income Securities, Sustainability-Linked Revolving Credit Facilities) are considered in the context of reducing exposure to transition risk.

12 transition relevant taxonomies, guidance and principles by the public sector (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private sector (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS) are considered to identify core elements of transition finance.

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