Masterclass in Climate Transition Finance: Principles, Pathways and Practice
Course Director:
Dr Gireesh Shrimali, Head of Transition Finance Research, Oxford Sustainable Finance Group and José Luis Reséndiz, Research Assistant, Transition Finance Research, Oxford Sustainable Finance Group
About
To deliver the objectives of the Paris Agreement and the UN SDGs, it is necessary that finance and financial services be provided to support, enable, and encourage companies, countries, and individuals to transition toward those objectives. Transition finance is the overarching framework for enabling finance for this transition. Given the crucial role of the public sector in providing the enabling environment for this transition, the Masterclass will provide public servants and third sector representatives with a foundational understanding of transition finance. The Masterclass will provide participants with an understanding of key concepts, new asset classes, market insights, and topics to effectively navigate developments throughout this emerging field and discover and mobilise levers of change.
Format
3x sessions of 90 minutes
Online
Dates
- Session one, Foundations of Climate Transition Finance – Wednesday 8 May- 16.00 – 17.30
- Session two, Scaling Transition Finance for Impact – Wednesday 15 May – 12.00-13.30
- Session three, Panel Discussion – Expert Perspectives on Transition Finance – Wednesday 22 May – 12.00-13.30
Fees
- Free
Applications
Places on this course are strictly limited to those who have primary employment in:
- central or local government
- regulatory agencies
- supervisory authorities
- central banks
- multilateral institutions
- non-profit civil society organisations
- registered charities
- philanthropic organisations
Evidence of this may be requested and required.
To apply please complete the application form, for both individual and group bookings. We aim to respond within 10 working days of receipt of the application.
Objectives
By the end of this Masterclass participants will be able to:
- Understand the strategic role of financial institutions in scaling climate transition finance.
- Learn about the instruments, metrics, and tools financial institutions deploy to foster a credible transition.
- Gain insights into the regulatory landscape shaping the involvement of financial institutions in transition finance.
- Analyse real-world challenges and innovative solutions from financial institutions driving the transition to a low-carbon economy.
Masterclass syllabus
Session one
This session will provide a comprehensive understanding of the principles, scope, and importance of transition finance, setting the stage for more detailed discussions in Session 2.
Focus Areas:
- Introduction to Transition Finance
- Definitions and goals
- Scope and credibility
- Principles and taxonomies
- Sustainability-linked Finance/Instruments
- Asset classes
- Principles and frameworks
- Examples: Transition bonds and SLBs
- Transition Plans: Disclosure and Credibility
- Need for regulation
- Transition Plan Taskforce
- Preparation and assessment
Session two
This session will explore the instruments, mechanisms, and policies that enable scaling transition finance, focusing on practical applications and regional/national strategies.
Focus Areas:
Sector-Specific Pathways:
- Decarbonisation strategies for energy, steel, and cement sectors and the role of financial institutions in financing these transitions.
- How sectoral decarbonization pathways guide financial decisions
- Challenges in designing credible transition plans for these sectors
Instruments and Mechanisms:
- Market landscape of transition bonds, sustainability-linked bonds, and blended finance.
- Examples of successful use cases in developed and emerging markets.
Policy Archetypes Driving Transition Finance:
- Industrial Policies: Inflation Reduction Act (IRA), REPowerEU, Japan’s Transition Finance Framework.
- Taxonomies: European Union and ASEAN taxonomies, their structure and relevance.
Barriers to Scaling Transition Finance:
- Climate transition finance metrics.
- Policy inconsistencies, lack of private sector engagement, and limitations in emerging markets
Business Case Study:
- Analysing the scaling of advanced transition technologies and the integration of financial instruments and policy incentives to support sector-wide decarbonisation.
Session three
This panel session with industry experts will explore:
The Role of Financial Institutions:
- Driving innovation in climate finance products and scaling impact.
- Balancing risk and return in funding hard-to-abate sectors.
Global and Regional Challenges:
- Financial institutions’ role in addressing financing gaps in emerging markets and developing economies
Credibility and Integrity:
- How financial institutions can combat greenwashing and ensure robust transition planning.
Future Directions:
- Emerging financial instruments and regulatory trends shaping the next decade of transition finance.
Download Course Brochure
OxSFG was established in 2012 and is a multidisciplinary research centre working to be the world’s best place for research and teaching on sustainable finance and investment. We work globally across asset classes, finance professions, and with different parts of the financial system.