Financing the global transition

The UK's offer

  • A leading hub for climate action and green finance
  • A global financial hub with large pools of capital and a depth of financial expertise
  • World-class education and research institutions
  • Leadership in the development of international sustainable finance fora
  • One of the highest numbers of companies with ambitious net zero targets

The UK | leaders in transition finance

Building a high-integrity transition finance market is a climate imperative and a major opportunity.

The global transition to a low carbon economy presents a major opportunity to deliver sustainable growth. The green economy alone now boasts a global market cap of US$7.2 trillion and has recorded a 14% compound annual growth rate over the past decade.

But traditionally ‘green’ activities (such as wind, solar, and electric vehicles) alone will not get us to net zero. To meet climate targets, capital needs to be directed to the activities and technologies required for the decarbonisation of high-emitting sectors, including those which are not yet commercially viable. Examples (of these activities include lower carbon hydrogen, carbon capture and storage, electrification of industrial processes, and lower carbon retrofit of buildings and infrastructure.

McKinsey estimates that the global market opportunity for UK companies supporting this transition could be worth more than £1 trillion by 2030. As a major financial centre and a leading hub for climate action and green finance, the UK can play a leading role in financing this global transition while supporting its own.

Transition finance is the financial flows, products and services that facilitate an economy-wide transition to net zero consistent with the Paris Agreement.

The need for transition finance will be particularly acute to support the decarbonisation of high-emitting sectors such as heavy industrial sectors, transport, energy, agriculture and the built environment.

Find out more

The Transition Finance Council

The Transition Finance Council

Find out more

The Transition Finance Market Review

The Transition Finance Market Review

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Scaling Transition Finance: Findings of the Transition Finance Market Review

Scaling Transition Finance: Findings of the Transition Finance Market Review

How the City of London Corporation supports the growth of transition finance

Transition Finance Market Review

The City of London Corporation hosted and co-led the secretariat for the independent, Government-commissioned Transition Finance Market Review (TFMR). 

The TFMR is an independent, market-led initiative commissioned by the UK Government and chaired by Vanessa Havard-Williams. Through extensive stakeholder engagement – including over 40 workshops and 200 bilateral meetings – it has developed practical recommendations for scaling transition finance while maintaining market integrity.

The TFMR’s final report Scaling Transition Finance: Findings of the Transition Finance Market Review was published in October 2024. The City of London Corporation recently co-launched the Transition Finance Council with UK Government, spearheading the UK's transition finance agenda.

The Transition Finance Council

The City of London Corporation recently co-launched the Transition Finance Council with UK Government, spearheading the UK's transition finance agenda. The Council’s aim is to leverage the UK’s existing strengths to become the best place in the world to credibly raise transition capital, invest, and obtain financial and professional services in support of UK and global net zero ambitions.

The Council includes representation from the financial and professional services sectors, real economy, government, regulators, standard setters, and civil society.

The Council has three core functions:

  1. Monitor and drive implementation of the TFMR’s recommendations by government, regulators, and the market.
  2. Support transition finance capacity building and engagement across a breadth of UK and international stakeholders.
  3. Convene working groups to progress priority areas in accordance with the Council’s objectives.

Find out more on our Transition Finance Council page.

US $7.2tn

The green economy’s global market cap, which saw a 14% compound annual growth rate over the past decade

£1tn+

The estimated global market opportunity by 2030 for UK companies supporting the transition to net zero

US $6.7tn

per year of annual investments in transition finance needed to meet global decarbonisation goals

c50%

of the world’s largest businesses have now made public net zero commitments

Get in touch

If you’re interested in attending an event or discussing transition finance and ways in which the City of London can support this growing market, please contact us at: sustainablefinance@cityoflondon.gov.uk

Helping economies worldwide tackle climate challenges

The Global City sustainable finance hub

The Global City sustainable finance hub