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The report argues that India requires cumulative investments of US$10.1 trillion by 2070 to reach net-zero, yet current tracked mitigation finance is only about 25 percent of the required amount. It distinguishes between 'green finance' for near-zero emission technologies and 'transition finance' for hard-to-abate sectors that lack immediate green alternatives. The document identifies critical gaps in the supply of finance, noting a lack of standardised taxonomy and an underdeveloped corporate bond market. On the demand side, it analyses the decarbonisation needs of the steel, cement, transport, power, and agriculture sectors, highlighting the high capital costs and technical risks of transformative technologies like Carbon Capture, Utilisation, and Storage (CCUS). The report proposes a five-pillar roadmap covering scope and definition, transparency, cooperation, supply chain support, and financial innovation, while recommending the establishment of a Prime Ministers Net Zero Council (PMNZC) to coordinate inter-ministerial efforts.

The report argues that current credit ratings and ESG frameworks fail to adequately measure a company's environmental impact, creating a gap that hinders transition finance for hard-to-abate sectors like steel and cement. To address this, the Climate Policy Initiative proposes a Carbon Rating Framework that evaluates a company's carbon emission intensity over a three-to-five-year horizon. The framework suggests a weighted approach combining past emission intensity (indicatively 70%) and projected future intensity (indicatively 30%), the latter being a function of projected emissions and revenue. The authors propose a 10-point rating scale based on the distribution of carbon intensity among companies reporting under SEBI's Business Responsibility & Sustainability Report (BRSR). The framework focuses on Scope 1 and Scope 2 emissions at the company level and suggests a composite rating system to account for sector-specific challenges in hard-to-abate industries.

The report finds that while international public finance for fossil fuels from CETP signatories has decreased significantly, there has not been a corresponding increase in clean energy finance. Many signatories lack quantitative targets or comprehensive policies to prioritize clean energy, and some high-income countries continue to violate the pledge by financing fossil fuel projects.

The document analyzes South Africa's transition from a coal-dependent economy, highlighting the tension between transformative visions of social justice and narrower, market-based decarbonization efforts. It identifies significant challenges, including high regional economic dependence in Mpumalanga, a massive funding gap for the Just Energy Transition Investment Plan (JET IP), and institutional failures such as state capture and fragmented governance. The report examines the divergent perspectives of trade unions, national and local governments, state-owned utility Eskom, and civil society, while emphasizing the need for procedural justice and bottom-up engagement to ensure the transition does not entrench existing inequalities.

The report argues that credible transition plans are essential to mitigate 'greenwashing' risks and attract diverse financing for the power sector's decarbonization. It highlights the prevalence of Sustainability-Linked Bonds (SLBs) in the power industry and provides a framework for developing transition plans and selecting appropriate financial instruments.

The report argues that for China's power sector to meet its 2030 peak emissions and 2060 carbon neutrality targets, electrical utilities must develop credible, science-based transition plans. These plans serve as the foundation for transition finance instruments, such as Use of Proceeds (UoP) bonds and sustainability-linked bonds (SLBs). While China is a major global issuer of SLBs, the report notes a lack of alignment with rigorous standards, as many domestic issuers focus on renewable energy capacity rather than comprehensive greenhouse gas (GHG) emission reduction targets. The document provides a framework for utilities to develop transition plans and select appropriate financial tools to support low-carbon development, including the retirement of coal assets and grid optimisation.

The report analyzes how public development banks (PDBs) can align their operations with the Paris Agreement, distinguishing between 'project-level alignment' and 'portfolio-level net-zero' approaches. It argues that project-level alignment is the essential foundation for PDBs to support national low-emission climate-resilient development pathways, while portfolio-level tools can provide strategic benefits for those engaging with the private sector. The document details 11 operational benchmarks—such as inclusion/exclusion lists, shadow carbon pricing, and risk assessments—and provides case studies of institutions like the EBRD, BNDES, and AFD to illustrate practical implementation.

In 2022, Starwood Energy Group (now Lotus Infrastructure) accelerated the retirement of the Logan (225 MW) and Chambers (285 MW) coal plants by 30 months, moving the date from 2024 to 2022. This was achieved through a three-part strategy: renegotiating Power Purchase Agreements (PPAs) with Atlantic City Electric (ACE), refinancing project debt with a $200 million loan from MetLife, and planning the redevelopment of the sites into grid-scale battery storage. The transaction resulted in an estimated reduction of 3.9 million tons of CO2 and saved ACE customers approximately $30 million.

In 2022, ACEN Corporation sold its equity in the SLTEC coal plant to a special purpose vehicle (SPV), reducing the plant's operating life by 25 years to a retirement date of 2040. The transaction was enabled by the use of domestic financial institutions to provide low-cost debt and equity, as international lenders often have coal exclusion policies. The SPV re-levered the capital structure, increasing the debt/capital ratio from 0.58 to 0.79, with $247 million in debt provided by RCBC and BPI. This structure allowed ACEN to divest the asset and reinvest proceeds into renewable energy, aligning with its corporate goal of 100% renewable energy by 2025.

The report details a record-breaking Q1 2024 for aligned GSS+ debt, with USD 272.7bn added. Green bonds dominated the market, while Europe remained the primary regional source. The report also highlights the growth of sovereign GSS+ issuance, the emergence of nuclear energy in green bond frameworks in North America, and the evolving alignment of sustainability-linked bonds (SLBs) with Climate Bonds' methodology.

In 2023, Hong Kong's aligned GSS+ debt volume grew by 236% to USD 18.2 billion, driven primarily by the HKSAR Government's green bond issuance. The market is characterized by a strong preference for green-themed debt, with low-carbon buildings and land use as the primary use-of-proceeds categories. While the HKSAR Government dominates the local market, the Hong Kong Stock Exchange remains a key hub for offshore Chinese green bonds. The report also highlights the emergence of transition finance frameworks in mainland China and the introduction of the Hong Kong Taxonomy for Sustainable Finance to improve interoperability with international standards.

The Climate Bonds Initiative introduces a tool for financial institutions to evaluate corporate transition maturity across five categories, ranging from 'No Action' to 'Net Zero Achieved'. The system uses specific indicators across commitment, emission targets, implementation strategies, governance, and performance to determine if a company's financing can be labeled as 'transition finance' or 'green finance'. It emphasizes the need for science-based benchmarks, trackable annual actions, and board-level governance, while providing a weighted scoring method for companies with multiple business activities.

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 market, though issuance volume saw a slight decrease. The market is characterized by a strong focus on renewable energy and low-carbon transport, with increasing alignment with international standards like the CBI definitions and the Common Ground Taxonomy. While social and sustainable bonds saw a rebound in volume, they face challenges regarding information disclosure and the use of proceeds for general operations. Sustainability-linked bonds (SLBs) remain globally leading in volume, but few issuers utilize greenhouse gas emission reduction targets. Policy progress includes the introduction of the 'Green Bond Principles' and the emergence of local transition finance guidelines in cities like Shanghai and Chongqing.

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 report finds that the aligned GSS+ debt market reached a cumulative volume of USD 4.4 trillion by the end of 2023. Green bonds remain the dominant theme, with 2023 aligned volume reaching USD 587.6 billion, while sustainability and social bonds saw year-on-year declines. Conversely, aligned SLB volume grew by 95% to USD 22.9 billion. Europe was the largest source of aligned GSS+ debt in 2023, while the USA experienced a 38% decline due to anti-ESG sentiment. The report also highlights the growth of 'blue-labelled' debt and the increasing role of sovereign issuers in the GSS+ market.

The report finds that Chevron's strategy prioritizes oil and gas expansion and shareholder returns over sustainable energy. Its projected 2030 production levels and LNG capacity exceed NZE requirements, while its diversification efforts are described as marginal and focused on unsustainable energies like bioenergy and fossil-fuel-based hydrogen.

The paper analyzes the financing gap in India's iron and steel sector, which is the country's largest industrial GHG emitter. It highlights a risk of carbon lock-in as 196 MTPA of fossil-based capacity is planned for 2021-2038. The authors propose a five-pillar framework—sectoral policies, enabling ecosystems, bankable business models, financing/derisking mechanisms, and financial sector regulations—to transition from fossil-intensive production to low-carbon technologies like green hydrogen-DRI. It details specific instruments such as Carbon Contracts for Difference (CCfD), blended debt funds, and Article 6 of the Paris Agreement to bridge the investment gap.

Reclaim Finance finds that Shell's investment strategy prioritizes oil and gas expansion and shareholder returns over renewable energy, leading to production levels and LNG capacities that significantly exceed NZE requirements by 2030. The report notes that Shell has reduced its carbon intensity targets and relies heavily on unproven carbon capture and offsets, while its renewable energy growth remains marginal compared to its fossil fuel output.

The report warns that 'unabated' coal phase-down strategies—including co-firing, retrofitting with CCS, and using carbon credits—risk extending the life of fossil fuel infrastructure and providing incomplete emission reductions. It urges public development banks to avoid these 'false solutions' to ensure public funds support rapid coal retirement rather than prolonging coal usage.