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The document argues that while green taxonomies are not a standalone solution for financing the energy transition, they serve as a critical 'building block' for establishing credibility and standardising green definitions to attract international investment. It highlights the tension between 'interoperability'—the ability for taxonomies to work across borders—and 'usability'—the practical application within local contexts where data may be limited. The brief recommends a phased approach, starting with climate mitigation and incorporating adaptation and resilience objectives using international guidance to avoid fragmentation. It emphasizes that taxonomies must be integrated into broader policy frameworks, including de-risking tools and currency hedging, to effectively steer capital toward sustainable activities in emerging economies.

The Climate Bonds Initiative presents a tool for financial institutions to classify corporate transition maturity into five categories: No action, Committed, Aligning, Aligned, and Net zero. The system uses specific indicators across five components—Commitment, Emissions Targets, Delivery Strategy, Governance, and Performance—to determine a corporate's status. It distinguishes between 'short-term+' and 'full-term' plans within the 'Aligning' category and allows 'Climate Solutions' to be categorised as 'Aligned' for a limited period. The guide also provides a weighted-average methodology for corporates with multiple business activities and suggests that financing for corporates in the 'Aligning' and 'Aligned' categories can be considered 'transition finance'.

In 2023, China maintained its position as the world's largest green bond issuance market, despite a slight decline in total volume. The market is characterized by a strong preference for short-dated debt and a growing reliance on Second Party Opinions to enhance credibility. While green bonds are increasingly aligned with the 100% Use of Proceeds (UoP) rule, social and sustainability bonds face challenges with transparency and disclosure. Sustainability-linked bonds (SLBs) are prolific in number but rarely utilize greenhouse gas (GHG) reduction targets. Policy drivers include the China Green Bond Principles and the China-EU Common Ground Taxonomy, alongside emerging local transition finance guidelines for hard-to-abate sectors like steel and chemicals.

The document argues that clean hydrogen should be treated as a 'precious molecule' and prioritised for 'no regrets' hard-to-abate industrial sectors rather than being deployed indiscriminately. It recommends that EU Member States move beyond a sole focus on renewable ('green') hydrogen to include other low-carbon pathways, such as nuclear ('pink') and natural gas with carbon capture ('blue'), to avoid resource constraints. The guide emphasises locating production close to end-users to minimise transport inefficiencies and suggests that hydrogen in transport be limited to heavy-duty trucking, aviation, and shipping, while light-duty vehicles should prioritise electrification. Finally, it advises leveraging EU and national support mechanisms to fund 'champion' projects across the entire value chain.

The document argues that transitioning the global economy to limit warming to 1.5°C requires between $200 trillion and $275 trillion by 2050. It proposes a common vision for transition finance based on credible decarbonization strategies, annual monitoring, and the avoidance of carbon lock-in. The letter outlines specific calls to action for the financial sector, governments, and issuers to overcome barriers such as greenwashing fears and high capital costs to mobilize capital for high-emitting sectors.

The report examines the role of green hydrogen in a just energy transition, arguing that its deployment must prioritize sustainable development and decarbonisation over simple profit. It recommends that development finance institutions support the build-up of local renewable energy supply chains, integrate electrolysers into national grids to enhance electrification, and prioritise domestic industrial use of green hydrogen in the Global South over exports. Case studies of Namibia, India, and Colombia reveal inconsistent definitions of 'green' hydrogen, a tendency to target inefficient applications like road transport, and significant environmental risks such as water scarcity.

The guide outlines a five-step process for corporates to issue transition-linked bonds: building a credible transition plan, selecting a thematic label, creating a sustainable financing framework, executing the bond issuance, and conducting post-issuance reporting. It emphasizes the necessity of science-based, 1.5°C-aligned decarbonisation pathways and the integration of social safeguards to ensure a just transition. The document details the differences between Use of Proceeds (UoP) bonds and Sustainability-Linked Bonds (SLBs), providing criteria for selecting material Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs). It also highlights market trends, such as the 'greenium' (cheaper pricing for labelled debt), and warns against greenwashing risks associated with non-transparent frameworks or carbon lock-in activities.

The Clean Air Task Force (CATF) recommends that the EU prioritise 'no regrets' industrial sectors for hydrogen deployment, utilize all clean production pathways (including 'blue' hydrogen), and site production close to consumption to minimize transport inefficiencies. The report emphasizes that public funding should be matched to projects that provide socio-economic benefits to local communities and that a comprehensive EU database should be established to ensure transparency and collaboration.

The cement industry accounts for approximately 7% of global CO2 emissions and faces significant barriers to decarbonisation due to high capital intensity and the nature of process emissions. The report argues that achieving net-zero by 2050 requires a combination of technological shifts—such as carbon capture and storage (CCS), alternative binders, and fuel substitution—and robust policy support. Key policy recommendations include the implementation of carbon contracts for difference (CCfDs), green public procurement, and carbon border adjustment mechanisms (CBAMs) to prevent carbon leakage. Financial investment needs are estimated to reach USD 70 billion annually between 2030 and 2040, which the report suggests could be unlocked through the sustainable debt market and science-based certification standards.

The report assesses Europe's geological CO2 storage potential, estimating theoretical capacity between 262 and 1520 GtCO2. It compares 'Domestic' (widespread) and 'Export' (limited basins) storage scenarios against 'Prioritised' and 'Technical Potential' demand scenarios. While Europe has sufficient long-term theoretical capacity, current announced projects are insufficient for 2035 demand. The study highlights that widespread domestic storage significantly reduces transport CAPEX compared to export-heavy models, though some countries like Finland and Estonia lack suitable sedimentary basins.

The document outlines 12 key policy interventions to accelerate the transition of hard-to-abate sectors, categorised into simplifying pathways, steering risk and opportunity, derisking green investments, and facilitating essential resource flows.

The report asserts that the EU cannot reach net zero by 2050 without large-scale deployment of CCUS, estimating a need to capture and store between 300 and 640 Mt of CO2 annually by 2050. It highlights a significant gap between current project announcements and the necessary infrastructure, particularly in CO2 transport and geological storage. The authors recommend that the European Commission establish clear targets, a regulatory framework for CO2 grids, and financial mechanisms like Carbon Contracts for Difference (CCfD) to de-risk investments. The document specifically identifies 'hard-to-abate' sectors—such as cement, steel, and waste-to-energy—as critical areas where CCUS is either the lowest-cost or only viable decarbonisation pathway. It also emphasizes the necessity of technology-based carbon dioxide removals (CDR) via BECCS and DACS to balance residual emissions.

The document highlights the role of Green Public Procurement (GPP) in the construction sector as a tool for G20 nations to reduce environmental impacts and meet climate commitments, specifically in sectors like steel and cement. It asserts that achieving this requires collaboration among G20 members and the adoption of clear mandates, monitoring, upskilling, and time-bound targets.

The ASEAN sustainable finance market contracted by 32% in 2022 to USD 36bn due to rising inflation and interest rates, though volumes remained double those of 2020. Singapore continues to lead the region, accounting for 60% of 2022 issuance. While green bonds and loans showed the most resilience, sustainability-linked bonds (SLBs) saw a nearly 90% plunge. Sovereign issuance remained robust, with Singapore and the Philippines entering as new sovereign issuers. The report highlights a shift toward local currency denomination in green debt and a critical need for mandatory, science-based corporate transition plans to avoid greenwashing and support hard-to-abate sectors.

The report details the growth and composition of China's GSS+ debt market, highlighting that China was the largest global source of green bonds in 2022. It examines the shift toward 100% use-of-proceeds alignment, the emergence of transition finance for hard-to-abate sectors, and the dominance of rural revitalisation in the social bond segment.

The cement sector is a major industrial emitter, accounting for approximately 7% of global CO2 emissions and 4% of EU emissions. The report argues that the current decade is critical because 30% of EU cement kilns will reach the end of their life by 2030, presenting a window to avoid stranded assets by investing in low-carbon technologies. Key technical levers include reducing the clinker-to-cement ratio, implementing carbon capture and storage (CCS), and substituting fossil fuels with biomass and waste. To support this, the report recommends a comprehensive policy suite: upstream (accelerating renewable energy and CO2 infrastructure), midstream (implementing Carbon Contracts for Difference and phasing out ETS free allowances), and downstream (mandating green public procurement and scaling off-take agreements). It also highlights the role of sustainable finance, noting that while sustainability-linked bonds (SLBs) have been issued, their potential in the cement sector remains under-exploited due to a lack of sector-specific standards.

The briefing outlines six trends for financial institutions in 2023: the rise of short-term transition plans, political backlash against ESG investing, the growth of renewables over plateauing fossil fuels, the need for climate upskilling of employees, increased regulatory scrutiny on greenwashing, and the shift toward using transition-relevant data for portfolio steering.

The report evaluates transition planning among ASEAN companies in sectors like cement, steel, and chemicals against the Climate Bonds Initiative's 'Five Hallmarks' of a credibly transitioning company. It finds that while net-zero commitments are increasing, most plans are fragmented and lack the robust, costed, and science-based pathways necessary for a 1.5°C alignment. The document provides specific analysis of companies such as Siam Cement Group and PTT, and offers guidance on improving the credibility of sustainability-linked bonds (SLBs) by ensuring they include material emission scopes and absolute targets.

The document argues that biogas and biomethane should primarily be reserved for hard-to-abate sectors like petrochemical production and industrial heating, as electrification via renewable energy is more cost-effective for power and heat. It highlights that biogas only addresses a minority of agricultural emissions (at most 28.9%) and warns that scaling production to meet targets, such as the EU's 35 bcm goal by 2030, could threaten food security by requiring significant arable land. Additionally, the briefing notes risks from fugitive methane emissions, high reliance on public subsidies, and safety hazards including explosions and toxicity.

The guide outlines five key tips for understanding decarbonization models, emphasizing that they are often deterministic 'black box' optimizations that may prioritize lowest cost over the best societal outcome, overlook non-electric sectors, undervalue grid reliability, present scenarios as predictions rather than possibilities, and rely on implausible assumptions regarding implementation and infrastructure.