ITPN Releases Two New Reports to Support Transition Planning and Finance

Private Sector Transition Plans: A Critical Tool for Mobilising Finance 

The first report, Private Sector Transition Plans: A Critical Tool for Mobilising Finance, provides an overview of how private sector transition plans are driving finance flows and strengthening financial performance.  

Aimed at public sector officials, it outlines where transition plans are already influencing investment decisions. A set of case studies included in the report show how organisations have used transition plans to mobilise transition finance. 

The report outlines five mechanisms through which transition plans help mobilise finance: 

1. By enhancing market confidence through providing a means to assess credibility of commitments and feasibility of planned actions. This can also reduce risk of actual or perceived greenwashing and legal liabilities. 
2. Through managing risk by helping financial institutions, companies, and regulators identify and price forward-looking risk. This can reduce uncertainty, increase resilience, and support financial market stability. 
3. Identifying investment opportunities by assessing transition plan information when making decisions about financial products, portfolio construction, and capital allocation. 
4. By driving value creation and competitive advantage through implementing a credible transition plan. This can deliver measurable financial benefits to companies, including reduced operational expenditure and access to new revenue streams. 
5. By influencing access to capital and financing costs by disclosing transition information. Companies may access financial advantages such as improved access to capital and for some sectors, lower cost of capital. 

Monet Mooney, Lead author, Private Sector Transition Plans: A Critical Tool for Mobilising Finance says, “Credible transition plans can play a crucial role in the mobilisation of finance. They enhance market confidence, improve risk management, help identify investment opportunities, create value, and influence capital access and costs. Transition plans aren’t a compliance exercise – they’re strategic tools for competitiveness.” 

 
Sector Transition Plans: A bridge between national ambition and company transition plans 

ITPN also released Sector Transition Plans: A bridge between national ambition and company transition plans, produced with the TPI Centre for Global Transition at LSE.  

The paper explores the emerging role of Sector Transition Plans as a tool to link national ambition with company-level transition planning.  

It highlights three key ways these plans can support policymakers, companies, and financial institutions, drawing on examples from France, Australia, Japan, and Hebei province in China. 

Governments seeking to create an enabling environment for private sector transition planning can look to Sector Transition Plans. These plans outline sector-level emissions pathways, technology roadmaps, and financing needs, and support the private sector by: 

1. Providing clear policy signals on the direction and pace of the transition. 
2. Helping companies understand geographically specific dependencies and feasible transition levers. 
3. Enabling more localised assessments of corporate transition plans and supporting transition finance. 

Ben Gilbey, Lead author, Sector Transition Plans: A bridge between national ambition and company transition plans  says, “Sector Transition Plans translate national ambition into actionable roadmaps for companies and investors. By grounding transition planning in sectoral and geographical context, governments can give markets the clarity and confidence needed to accelerate the flow of transition finance.” 

Both reports and one-page summaries are available now on the ITPN website https://itpn.global/publications/