Full Title: The Transition Finance Nexus: A Primer on the Connections Among Transition Pathways, Planning, Assessment, and Finance in the Banking sector
Author(s): Shravan Bhat, Elizabeth Harnett, Tricia Holland, and Estefanía Marchán
Publisher(s): Rocky Mountain Institute
Publication Date: April 24, 2025
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Description (excerpt):
Transition finance has rapidly emerged as a key concept for banks seeking to reach their net-zero targets and support real-economy decarbonization. This has relied on and contributed to a growing ecosystem of transition-related processes and approaches. In this primer, RMI introduces the “transition finance nexus” as a new way of conceptualizing the connections among transition pathways, transition plans and planning, transition assessment, and transition finance.
While transition finance guidance often refers to these different elements, little attention has been paid to the interconnections between them. Here the authors address this gap and add nuance to the transition narratives in the banking sector. This includes highlighting key dependencies involved and demonstrating that improving individual parts of the system will strengthen the whole nexus. These insights are based on research and engagement across the transition finance nexus, including interviews and consultation with 15 organizations, including banks, industry alliances, and nongovernmental organizations (NGOs).