Scaling Transition Finance: Findings of the Transition Finance Market Review

The UK’s Climate Change Committee estimated that the UK will need a five-fold growth in investments to approximately £50 billion per year in 2030 to meet net zero commitments.

Transition finance is essential if we are to deliver on decarbonisation commitments and achieve the goals of the Paris Agreement. ‘Scaling Transition Finance: findings of the Transition Finance Market Review' sets out recommendations on how to scale a high-integrity transition finance market that can support both UK and global net zero ambitions.

Facilitating and delivering this investment from public and private sources, in the most impactful and efficient way, will be critical. If done correctly, this will present significant opportunities to the companies and investors that find themselves on the front foot.

BloombergNEF estimates that, to match their ‘economic transition’ scenario, annual investment must rise to $6.7 trillion per year globally

Central to the findings of the Review are recommendations on how to unlock the required levels of finance by creating the right policies, pathways, and signals for investment through collaboration between government, investors, business, and civil society.

The UK will require an estimated £50-60 billion annually through the late 2020s and 2030s to meet its net zero objectives. While progress has been made through decarbonising the power sector, further investment is crucial in sectors like industry, transport, and agriculture.

The Transition Finance Market Review (TFMR) is an independent review commissioned by HMT and DESNZ and hosted by the City of London Corporation.