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The report analyzes the evolution of 'net zero' and 'nature positive' concepts, detailing how they are operationalized through taxonomies and methodologies in the financial sector. It highlights the interdependence of climate and nature crises, arguing for an integrated 'net-zero nature-positive' (NZNP) finance approach to manage compounding risks and leverage synergies, while noting that a unified NZNP definition and measurement protocol do not yet exist.

The report examines the evolution of policy frameworks, taxonomies, and financial instruments across major Asian economies, categorizing them into international financial hubs, industrialized powerhouses, and rapidly developing economies to analyze their complementary roles in the regional transition finance landscape.

The report argues that current transition finance frameworks lack the systemic safeguards necessary to prevent carbon lock-in, particularly in hard-to-abate sectors. It proposes moving from asset-level financing to a systemic approach underpinned by Paris-aligned, subnational net-zero pathways. The document examines the gap between corporate transition plans and the requirements for credible transition finance, noting that many high-emitting oil, gas, and agrifood entities lack mature strategies. It advocates for the use of Paris-aligned taxonomies to ensure that use-of-proceeds (UoP) instruments drive genuine decarbonisation without creating 'dead-end pathways'.

The report argues that many planned coal plants in low- and middle-income countries (LMICs) are candidates for reconsideration due to declining costs of solar and battery storage, evolving grid needs, and the risk of long-term financial lock-in. It introduces a five-indicator framework—fuel source, initiation date, sunk costs, designed grid role, and evolution of grid needs—to prioritize plants for reevaluation. RMI's analysis suggests that solar paired with battery energy storage systems (BESS) is increasingly cost-competitive with new ultra-supercritical coal, potentially offering a more affordable and flexible alternative for modernizing grids.

The document demonstrates how banks can move beyond high-level corporate ambition assessments by using bottom-up, asset-level data to project emissions trajectories. Using ArcelorMittal as a case study, it shows that comparing these projections against company targets and global/regional transition pathways reveals 'execution gaps' and exposure to transition risks. This 'transition intelligence' allows sustainability, risk, and front-office teams to identify specific technology lock-in risks and structure tailored transition-finance products.

Gham Power installed a 924 kWp rooftop solar PV system for Laxmi Steels in Sunwal, Nepal, completed on 29 September 2024. The project aimed to mitigate frequent power outages and high energy costs associated with grid reliance and diesel generators. Over 25 years, the system is expected to save approximately 540 kilolitres of diesel and reduce carbon emissions by about 2,730 tonnes, while lowering long-term energy costs by 15%. The project received financial support from the Nepal Renewable Energy Programme, UK Aid, and the Alternative Energy Promotion Centre. Additionally, Laxmi Steels is the pilot site for the GRIPS2 project, which integrates a 2 MW / 4 MWh Battery Energy Storage System (BESS) with a 1 MWp solar PV installation and an AI-powered Microgrid Management System.

A pilot project in Berbere, Ethiopia, replaced costly and unreliable petrol-powered irrigation with solar pumps, enabling farmers to shift from subsistence staple crops to high-value produce and significantly increasing their seasonal earnings.

The report identifies China as the world's largest methane emitter and explores how sustainable finance can bridge the investment gap for abatement. It highlights the 2025 NDC update as a critical window for action and recommends the integration of quantitative methane targets, expanded green taxonomies, and the inclusion of methane in the national emissions trading system to mobilise the estimated USD 7.7 billion in annual investment needed.

The report identifies China as the world's largest methane emitter and highlights a significant funding gap, estimating a domestic need of approximately 7.7 billion USD annually. While China has updated its Nationally Determined Contributions (NDC) to include all greenhouse gases, the report argues that a lack of quantitative targets, detailed technical standards, and integrated MRV systems hinders large-scale private investment. It suggests expanding the Green Finance Support Project Catalogue, integrating methane into the national carbon trading system, and developing diverse financial instruments—such as KPI-linked bonds and equity funds—to accelerate the deployment of abatement technologies in coal mines, oil and gas systems, and livestock and rice farming.

The report analyzes the financial needs and current tools supporting the low-carbon transition of China's coal power sector, which is estimated to require over ten trillion yuan in funding. It evaluates existing domestic transition finance catalogs and debt instruments, compares them with international standards—such as those in Singapore and ASEAN—and examines multilateral mechanisms like JETP and ETM. The document concludes with six action recommendations to improve standard systems, optimize financing mechanisms, and leverage the leadership of central enterprises to ensure a credible and just transition.

The Canadian government has provided initial two-year funding to create a sustainable investment taxonomy. This framework, developed by an independent Taxonomy Council supported by the Canadian Climate Institute and Tomorrow's Business Path, aims to establish a common language for 'green' and 'transition' investments. The goal is to mobilize private capital for clean growth and decarbonize high-emission sectors. The Council intends to finalize guidelines for three priority sectors by late 2026 and an additional three by autumn 2027, ensuring alignment with international taxonomies and science-based targets.

The briefing outlines a phased strategy for Jharkhand to transition from a mining-dependent economy to a green industrial base. It identifies four high-potential sectors—Clean Power, Green Molecules, Sustainable Mobility, and Green Equipment Manufacturing—which could generate USD 1.43 billion in annual state tax revenue. The transition requires a total cumulative investment of USD 41.4 billion, implemented across three phases from 2026 to 2070.

Reclaim Finance advocates for a revised SFDR framework (SFDR 2) to address confusion and greenwashing caused by the original 2019 regulation. The organization supports the exclusion of fossil fuel developers from sustainable and transition categories, calls for clearer criteria for 'transition' assets, and identifies inconsistencies in the European Commission's proposal regarding reporting obligations and fund claims.

The document argues that the original SFDR created confusion and enabled greenwashing due to a lack of clear minimum guarantees. It proposes that the revised 'SFDR 2' should exclude fossil fuel developers from all categories, establish stricter and clearer criteria for 'transition' assets, and resolve inconsistencies regarding reporting obligations for non-categorized funds to restore investor trust.

The report evaluates CCUS as a primary decarbonization lever for India's steel sector, specifically targeting the emission-intensive BF-BOF route. It identifies single-point pre-combustion capture with gas conditioning as the most cost-effective technical approach, with a net CO2 abatement cost of USD 5560/tCO2. The study maps seven steel clusters in Eastern India and finds significant geological storage potential, primarily in deep saline aquifers (estimated at 62 Gt). To overcome high capital costs, the report proposes novel financing instruments like Partial Deep Discount Carbon STRIPS (PDDCS) bonds and the establishment of a Carbon Capture Finance Corporation (CCFC). It concludes that a breakeven carbon price of approximately INR 2,099 (USD 25)/tCO2 is necessary for project financial viability in a mature market.

The document argues that traditional green finance is insufficient for the Indian iron and steel sector because many necessary transitional technologies are not yet 'green' enough or are economically unviable. It identifies four core enablers for a transition finance (TF) market: sectoral roadmaps, climate finance taxonomies, credible corporate transition plans, and specialized TF instruments. To address high capex and cash flow constraints, the authors propose the Partial Deep Discount Carbon STRIPS (PDDCS) bond, which offers long-term debt (25-30 years) and allows investors to receive coupons in either cash or carbon credits generated by the project. The brief also suggests a flexible version (PDDB+C) to align with current Indian Carbon Credit Trading Scheme (CCTS) regulations, which currently limit carbon trading to registered entities.

The document outlines a forward-looking framework for financial institutions to evaluate corporate investment alignment. It moves beyond high-level disclosures by analyzing asset-level data to project future emissions and production trajectories. The process involves selecting metrics, gathering asset data, calculating company-level trajectories, choosing benchmarks (such as IEA scenarios or company targets), and interpreting the 'alignment delta' to identify transition risks and engagement opportunities.

The document outlines a granular, asset-level process for financial institutions (FIs) to map a company's transition footprint. This process involves five key steps: assessing double materiality to prioritize business lines, gathering detailed asset-level data, identifying retrofit and retirement timelines, selecting appropriate transition benchmarks (such as NDCs or peer data), and evaluating the resulting transition exposure. The guide emphasizes that moving beyond high-level emissions disclosures to asset-specific analysis allows FIs to identify carbon lock-in, policy misalignment, and opportunities for early retirement of high-emissions assets.

The G20 is characterized as an effective platform for macroeconomic crisis response that consistently fails to address systemic inequities, debt burdens, and environmental degradation. While the forum represents 85% of global GDP, its legitimacy is contested due to the dominance of G7 members and the fact that G20 members provided $1.4tn in explicit fossil-fuel support in 2022. The report notes that recent Global South presidencies (Indonesia, India, Brazil, and South Africa) have shifted priorities toward energy transition financing, digital public infrastructure, taxation of the super-rich, and care economies. The author recommends that the G20 redefine 'crisis' to include human and planetary security and integrate justice metrics into its coordination efforts.

The report identifies a growing global landscape of over 60 sustainable finance taxonomies, noting high-level interoperability in classification structures and objectives but significant challenges at the granular criteria level. While development is accelerating, implementation remains in early stages, particularly in emerging markets and developing economies (EMDEs). The Taxonomy Roadmap Initiative, launched at COP29, aims to address these gaps through three pillars: identifying core economic activities, developing common technical approaches, and formulating transition finance guidelines. To support these goals, the initiative is launching a set of tools at COP30, including a Sustainable Finance Taxonomy Mapper and Principles for Taxonomy Interoperability.