Global stocktake on transition finance helps set the direction for a future standard

An OECD white paper investigates some approaches to transition finance to draw some conclusions about where common ground existsThe taxonomy approach to ‘labeled’ bonds may be insufficient for transition finance, and creating alternative frameworks will be very important for Islamic marketsThe interplay between climate science and more localized economic considerations make transition finance more dynamic than ‘green’ or ‘climate’ finance where taxonomies have driven significant clarity for responsible finance

Standards have been developed in many subjects relating to green, climate-aligned and sustainable responsible finance, but there is one area that has eluded efforts to standardize definitions: transition finance. However, a new stockta...