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Transition Finance refers to investments and financial solutions designed to help industries and economies transition from high-carbon to low-carbon practices. Moody's Ratings combination of credit rating expertise with deep Sustainable Finance insights can play a critical role in supporting decision-makers on the road to transition, whether by helping to inform financing strategies, meeting investor demand for increased transparency, guiding market participants in understanding the impact of transition finance risks on credit, or providing insightful thought leadership.
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Our unique combination of credit rating expertise and sustainable finance experience can support your transition finance journey
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Explore how the evolving landscape of Transition Finance is reshaping credit ratings through our latest publications and research
Sectoral gaps to net zero are key to assessing carbon transition plan credibility
Even with robust climate action plans, companies in certain industries may miss their emissions targets because of long-term sector dynamics and external factors beyond their control.
Net zero implementation gap points to rising transition risks, despite policy shifts
As the gap between aspirations to achieve net zero emissions and reality widens, the risk of rapid acceleration in policy action will grow. Such a scenario would significantly raise transition risks for companies with high carbon exposure.
The climate finance conundrum
The world faces a $2.7 trillion annual climate investment gap by 2030. Can nations invest now to avoid future losses?
Energy transition white paper underscores commitment to net zero, a credit positive
On 29 August, China 's (A1 negative) State Council released an energy transition white paper, laying out a high-level road map to its 2060 net zero emission target. The authorities' commitment to their emission goals is credit positive for the China power sector, especially major rated power companies given their strategic role in achieving carbon transition.
Latest climate policies will increase burdens on emitters but bring long-term benefits
Companies in carbon-intensive sectors in China (A1 negative) are facing increasing transition risks amid government commitments to decarbonize and growing international scrutiny on corporate carbon transition plans.
Sustainable bond issuance declines in first half but $1 trillion for full year within reach
Second-quarter issuance totals $238 billion, down 20% from a year earlier. Decline in number of debut issuers poses potential constraint on market growth. Sustainable loan volumes shrink in the first half as SLL quality comes to the fore. ICMA issues new guidance documents and updates in response to changes in the market.
Achieving hydrogen’s decarbonization potential will be a marathon, not a sprint
Low-emission hydrogen has the potential to help decarbonize existing use in oil refining and the chemicals industry in the near term, as well as aviation, trucking, shipping, cement, steel and the power sector over a longer horizon.
Broader use of carbon capture will have mixed credit implications across sectors
Carbon capture, utilization and storage (CCUS) technologies have potential for use in highly carbon-intensive industrial processes and sectors that currently have limited means of decarbonizing. In this report, we discuss the current status of the technology, the feasibility of implementation, and the credit implications of broader use of CCUS.
Sustainable Finance Awards
Moody’s Ratings has been globally and locally acknowledged with awards and recognitions in the Sustainable Finance space.
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