The Transition Finance Nexus

The document proposes a "transition finance nexus" framework to illustrate how transition pathways, planning, assessment, and finance interact in the banking sector. It argues that these elements are interdependent and that improving any single part strengthens the entire system, creating a circular process for scaling transition finance. The framework is based on consultations with 15 organizations, including banks and NGOs.

• The transition finance nexus consists of four interdependent elements: transition pathways, which serve as the starting point; transition planning, where the process is more critical than the existence of a published plan; client transition assessment, which acts as the essential link between planning and the deployment of finance; and transition finance itself, which is enabled by the other elements and subsequently drives further progress in pathways, plans, and assessments.
• To scale the transition finance market, the document recommends increasing the granularity of transition pathways with sector and regional insights, creating guidance for decision-useful corporate disclosures, standardizing transition assessments to lower costs and complexity, and developing actionable solutions to overcome 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} }