• UK sets out draft guidelines to mobilise transition finance
• A first step in building consensus on a ‘global benchmark’ that will set up UK for success
• Global investors, financial institutions and regulators now have until 19 September to comment on the draft guidelines
The Transition Finance Council, co-founded by the Corporation and the UK Government, has today [18 August] unveiled draft transition finance Guidelines to unlock capital for high-emitting businesses.
Vanessa Havard-Williams OBE, senior leader at the Transition Finance Council, has stressed the need for a clear, credible playbook to support companies, investors and financial institutions (public and private) in funding the transition of high emitting sectors – a cornerstone of the UK’s ambition to be a global hub for transition finance.
Transition and green finance is playing an increasingly central role in building a net-zero global economy, with more than $2 trillion invested in decarbonisation globally in 2024[BNEF]. Investment in mature green sectors, such as solar and wind, is advancing. But transitioning sectors including transport, agriculture and heavy industries like cement, require significant capital to decarbonise their complex industrial processes and reduce reliance on fossil fuels.
Focusing on finance applied to companies (rather than projects or activities), the draft Guidelines are designed to be flexible, proportionate and practical. They apply across asset classes and geographies, including for emerging markets and developing economies and different types of company. This voluntary framework proposes a series of Principles and Factors designed to establish common minimum expectations, enabling transitioning business and investors, financial institutions, insurers, Governments and international organisations to confidently distinguish what is credible transition finance.
The Rt Hon Lord Alok Sharma KCMG, Chair of the Transition Finance Council, said:
“High-emitting sectors urgently need finance to decarbonise as the shift to clean energy becomes increasingly vital for both businesses and governments. These draft Guidelines are a critical piece in developing a UK transition finance market that is open, investable, aligned with international standards and sets a global benchmark. They will help capital providers to assess transitioning companies for example those in cement, shipping and transport, in a clear and consistent manner, broadening the reach of transition finance into high-emitting companies.”
Vanessa Havard-Williams OBE, Chair of the Transition Finance Market Review, said:
“The energy transition requires us to think more about how high-emitting sectors make progress. Today, too much capital remains on the sidelines, in part because of uncertainty over what qualifies as genuine transition finance. These draft Guidelines are an important step towards building consistency for companies and investors.”
Notes to editors
The consultation will be open for one month, closing on 19 September 2025 at 12pm. It invites initial feedback on the content, structure, and usability of the Guidelines, representing the first phase of engagement. A second consultation, building on those inputs, will be released in November. The intention is to issue a final version of these Guidelines in 2026.
To contribute to the consultation visit: Transition Finance guidelines
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