Financing credible transitions

The Climate Bonds Initiative presents a framework to categorise economic activities based on their role in a net-zero transition and establishes five principles to ensure transition labels are scientifically credible and ambitious. It distinguishes between 'green' and 'transition' labels based on the long-term viability of the activity in a low-carbon economy.

• The document proposes five 'Transition Principles' to ensure credibility and avoid greenwashing: alignment with 1.5°C limits, goals established by the science community rather than entities, exclusion of offsets while including upstream scope 3 emissions, prioritisation of technological viability over economic competitiveness, and a requirement for actual operating metrics over mere pledges.
• Economic activities are categorised into five types based on their longevity and decarbonisation potential: 'Near Zero' (already net-zero), 'Pathway to Zero' (needed beyond 2050 with a clear 1.5-degree path), 'No Pathway to Zero' (needed beyond 2050 but lacking a clear path), 'Interim' (needed now but phased out by 2050), and 'Stranded' (cannot align with targets and have substitutes).
• The report suggests a specific distinction for labelling: the 'green' label should be for activities with a long-term role in a low-carbon economy that are near zero or following a 1.5°C path, while the 'transition' label is for investments that contribute to 2030/2050 goals but will not have a long-term role or whose long-term path is currently uncertain.

APA

Creed, A., Adamini, M., Vaze, P., & Boulle, B. (2020). Financing credible transitions. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_fincredtransitions_final.pdf

Chicago

Creed, Anna, Manuel Adamini, Prashant Vaze, and Bridget Boulle. Financing credible transitions. Climate Bonds Initiative, 2020. https://www.climatebonds.net/files/documents/publications/cbi_fincredtransitions_final.pdf.

Wikipedia

{{cite report |last1=Creed |first1=Anna |last2=Adamini |first2=Manuel |last3=Vaze |first3=Prashant |last4=Boulle |first4=Bridget |title=Financing credible transitions |publisher=Climate Bonds Initiative |date=September 2020 |url=https://www.climatebonds.net/files/documents/publications/cbi_fincredtransitions_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{creed2020financing, author = {Creed, Anna and Adamini, Manuel and Vaze, Prashant and Boulle, Bridget}, title = {{Financing credible transitions}}, institution = {Climate Bonds Initiative}, year = {2020}, month = sep, url = {https://www.climatebonds.net/files/documents/publications/cbi_fincredtransitions_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }