Legal & Regulatory News

GFANZ launches consultation on transition finance strategies and measuring the impact on emissions

On 19 September 2023, the Glasgow Financial Alliance for Net Zero (GFANZ) launched a consultation seeking market feedback on its work to further refine the definitions of its transition finance strategies and support financial institutions to forecast the impact of these strategies on reducing emissions.

The four strategies identified by GFANZ as necessary to transition to a net zero economy are defined as financing or enabling: -

• the development and scaling of climate solutions;
• companies or assets already aligned to a 1.5-degree pathway;
• companies or assets committed to transitioning in line with a 1.5-degree pathway; and
• an accelerated managed phaseout of high-emitting physical assets.

The consultation aims to collate market feedback on a principles-based approach to these key strategies, highlighting potential ways to estimate the associated decarbonisation contribution impact. These principles have been built upon existing GFANZ publications, practices, transition finance frameworks, and potential decarbonsation contribution methodologies.

The consultation is set to close 2 November 2023. Once the consultation has closed, the final report shall be published by COP28.

Click here to read the press release.