Here we explore the final recommendations of the Transition Finance Market Review and what it means for the development of an effective and credible transition finance market in the UK and globally.

The International Sustainability Standards Board (ISSB) announced in June 2024 that the IFRS Foundation (which is responsible for the ISSB) has assumed responsibility for the materials developed by the UK Transition Plan Taskforce (TPT) to help streamline global transition planning.

We have seen a proliferation of initiatives related to climate transition plans over the last few years, with a number of voluntary frameworks, upcoming legal requirements and growing regulatory attention across Europe and internationally. Linklaters have partnered with The Association for Financial Markets in Europe (AFME) on a paper which takes stock of current and upcoming transition planning standards and regulation, highlighting key developments and considerations for banks in the EU and UK.

In the first instalment of RI’s Transition Finance Focus, Vanessa Havard-Williams outlines the UK’s plans to establish itself as a global transition hub.

Our webinar on "Charting the Course: Facilitating finance for the transition to a sustainable economy"  took place on 18 June 2024 and we discussed the growing interest across the world in transition finance, with a particular focus on the current market review into transition finance in the UK. 

Vanessa Havard-Williams, a member of the UK government’s transition plan taskforce, will provide colour around recommendations expected later this year on ensuring accurate and robust plans and the role of governance and third-party assurance.

Transition planning is a crucial part of adapting to an unpredictable future and lower carbon environment. It gives the roadmap for where companies are now, where they want to be, and how they plan to get there. All businesses need a plan for a future and investors in particular are calling for more reliable and comparable data so that they can make better informed decisions about capital allocations.

The UK Transition Plan Taskforce (TPT) has published its long-awaited ‘gold standard’ for climate transition plan disclosures.  The TPT Disclosure Framework and accompanying guidance provides a set of good practice recommendations to help companies across the economy make high quality, consistent and comparable transition plan disclosures, to help organisations set out credible and robust climate transition plans.

The UK Transition Plan Taskforce (TPT) published its final recommendations on climate transition plan disclosures, along with implementation guidance in October 2023.

On 14 March 2024, the Transition Finance Market Review (TFMR) launched a call for evidence seeking views on how the UK can leverage its existing strengths as a leading financial and insurance market, legal centre and significant exporter of professional services to become a global hub for funding the global net zero transition.

On 13 June 2023, the European Commission published a package of measures on the development of the EU sustainable finance framework.

As the global energy transition continues and the focus on environmental, social, and governance matters in most of the world's major and developed economies for both public and private companies increases, the impact of the different approaches that countries and political unions have taken to achieve transition and ESG goals is now coming into focus. This Linklaters article published in Project Finance International's (PFI) Yearbook issue takes a deep dive into the ESG goals. 

On 18 October 2023, the Monetary Authority of Singapore (MAS) issued a set of consultation papers proposing guidelines (the Proposed Guidelines) on transition planning for banks, insurers and asset managers (collectively, the FIs). 

After four rounds of public consultation, on 3 December 2023, the Green Finance Industry Taskforce (GFIT), convened by the Monetary Authority of Singapore (MAS), launched the Singapore-Asia Taxonomy for Sustainable Finance (the Taxonomy).