Transition Finance Market Review
The City of London Corporation hosted and co-led the secretariat for the 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 with credibility and integrity.
The TFMR’s final report Scaling Transition Finance: Findings of the Transition Finance Market Review was published in October 2024.
Purpose of the Review
TFMR’s focus is on how the UK can leverage its existing strengths to become the best place in the world to raise credibly transition capital, invest and obtain financial and professional services to support a net zero future.
Defining Transition Finance
At the heart of this review is the concept of 'transition finance’, which can be described as finance that supports an organisation to credibly decarbonise its activities, respond to any climate-related risks and opportunities, and to contribute to a global and economy-wide net zero transition. TFMR will focus primarily on the challenges specific to financing a credible net zero transition in hard to abate and high emitting areas of the global economy.
Opportune timing
As the world grapples with climate challenges, convening market experts now is a strategic move. The Review focused on how the UK can become the global centre for transition finance, building upon existing initiatives in other jurisdictions, by standard setters, and by industry coalitions. The UK’s financial and insurance markets, professional services sector, legal system; sustainable finance and data expertise and cleantech start-ups all give the UK strong foundations to create a dynamic and effective transition finance ecosystem.