A report titled Opportunities and Barriers to Transition in Hard-to-Abate Sectors, led by Schroders, focuses on hard-to-abate sectors, including steel, cement, chemicals, aluminium, aviation, shipping, and agriculture, and examines the investment barriers and financing opportunities these sectors face in the course of the low-carbon transition.

A report titled UK-China Collaboration on Transition Finance and the Green Economy, led by the London Stock Exchange Group (LSEG), focuses on the existing foundation for and future recommendations on cooperation between the United Kingdom and China in the fields of transition finance and the green economy. Both countries have submitted updated 2035 Nationally Determined Contributions (NDCs) and are supporting the transition to a low-carbon economy through measures such as climate-related disclosures, corporate transition plans, green and transition finance products, and capital market instruments.

This paper proposes a new financial instrument—the Lookback Transition Instrument (LTI). The mechanism builds on the existing transition finance framework and adapts the structures of existing transition finance instruments, including sustainability-linked loans (SLLs), sustainability-linked bonds, and transition bonds, to meet the low-carbon transition financing needs of small and medium-sized enterprises (SMEs).