Release: Transition Finance ：A Guide to Practice

Time: December 2023

The development of transition finance needs the concerted efforts of more entities. Currently, most local governments, financial institutions and enterprises still lack capacity building in the process of promoting transition finance. For example, some industries' transition pathways are not clear enough and their transition finance standards are not established yet, it is difficult for financial institutions to obtain transition goals and identify the transition pathways of enterprises, and the enterprises themselves lack recognition of green finance.

Based on the climate objectives proposed by the United Nations Framework Convention on Climate Change and its Paris Agreement and the G20 Framework for Transition Finance, and combined with the practice of China's transition finance (such as the overall planning of green finance and transition finance work of the People's Bank of China and the practice of green finance reform and innovation), theTransition Finance ：A Guide to Practice puts forward a framework of transition finance implementation for public and private sectors to achieve win-win cooperation, and puts forward specific operational steps from the perspective of local governments, financial institutions and enterprise practice.

First, the framework of transition finance implementation. This part puts forward the core objectives, main participants and key tasks of transition finance. Transition finance needs to anchor the global consensus on services to cope with climate change, with the collaborative participation of government departments (including industrial sectors and financial management departments), financial institutions and enterprises, and the promotion of transition finance mainly includes key issues as follows: identifying transition finance activities, innovating transition finance products, establishing transition finance policy tools, strengthening professional support and capacity building for transition finance, improving the process management of transition finance and carrying out information disclosure in transition finance.

Second, the Transition Finance Implementation Guide - Local governments. From the perspective of government departments, this part puts forward the main path of transition finance practices in local areas, and decomposes all work points and main methods step by step to provide reference for local transition finance innovation practice.

Third, the Transition Finance Implementation Guide - Financial institutions. From the perspective of financial institutions, this part puts forward the main path for financial institutions to carry out transition finance practice, and decomposes all work points and main methods step by step to provide reference for financial institutions' transition finance innovation practice.

Fourth, the Transition Finance Implementation Guide - Enterprises. From the perspective of enterprises, this part puts forward the main methods for enterprises to formulate transition goals and strategies, design transition action plans, carry out process management of transition activities and disclose transition information, in order to provide reference for enterprises to obtain transition finance support and promote sustainable development through scientific, feasible and credible transition actions.