The Transition Finance Nexus

This primer introduces the "transition finance nexus," a conceptual framework for the banking sector that illustrates the interconnections between transition pathways, planning, assessment, and finance to support net-zero targets and real-economy decarbonization.

• The 'transition finance nexus' conceptualizes the banking sector's approach to decarbonization as a circular process where transition pathways inform planning and assessment, which in turn enable the deployment of transition finance, which then supports further progress toward pathways and plans.
• While corporate transition plans provide useful information, the actual process of transition planning is the more critical element for the allocation of transition finance.
• Client transition assessment serves as the essential intermediate link between the planning process and the actual deployment of financing or related services like advisory and engagement.
• To scale the transition finance market, the document recommends improving pathway granularity with sector and regional insights, creating guidance for decision-useful disclosures to aid corporate planning, standardizing assessments to lower costs, and addressing implementation barriers.

APA

RMI (2025). The Transition Finance Nexus. https://rmi.org/resources/the-transition-finance-nexus/

Chicago

RMI. The Transition Finance Nexus. 2025. https://rmi.org/resources/the-transition-finance-nexus/.

Wikipedia

{{cite report |author=RMI |title=The Transition Finance Nexus |date=17 April 2025 |url=https://rmi.org/resources/the-transition-finance-nexus/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025transition, author = {{RMI}}, title = {{The Transition Finance Nexus}}, institution = {RMI}, year = {2025}, month = apr, url = {https://rmi.org/resources/the-transition-finance-nexus/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }