The UK's offer A leading hub for climate action and green financeA global financial hub with large pools of capital and a depth of financial expertise World-class education and research institutionsLeadership in the development of international sustainable finance foraOne of the highest numbers of companies with ambitious net zero targets The UK | leaders in transition finance Building a high-integrity transition finance market is a climate imperative and a major opportunity. The global transition to a low carbon economy presents a major opportunity to deliver sustainable growth. The green economy alone now boasts a global market cap of US$7.2 trillion and has recorded a 14% compound annual growth rate over the past decade. But traditionally ‘green’ activities (such as wind, solar, and electric vehicles) alone will not get us to net zero. To meet climate targets, capital needs to be directed to the activities and technologies required for the decarbonisation of high-emitting sectors, including those which are not yet commercially viable. Examples of these activities include lower carbon hydrogen, carbon capture and storage, electrification of industrial processes, and lower carbon retrofit of buildings and infrastructure. McKinsey estimates that the global market opportunity for UK companies supporting this transition could be worth more than £1 trillion by 2030. As a major financial centre and a leading hub for climate action and green finance, the UK can play a leading role in financing this global transition while supporting its own. Transition finance is the financial flows, products and services that facilitate an economy-wide transition to net zero consistent with the Paris Agreement. The need for transition finance will be particularly acute to support the decarbonisation of high-emitting sectors such as heavy industrial sectors, transport, energy, agriculture and the built environment. Find out more The Transition Finance Council The Transition Finance Council Find out more The Transition Finance Market Review The Transition Finance Market Review Download now Scaling Transition Finance: Findings of the Transition Finance Market Review Scaling Transition Finance: Findings of the Transition Finance Market Review How the City of London Corporation supports the growth of transition finance Transition Finance Market Review The City of London Corporation hosted and co-led the secretariat for the Government-commissioned Transition Finance Market Review (TFMR). The TFMR is an independent, market-led initiative commissioned by the UK Government and chaired by Vanessa Havard-Williams. Through extensive stakeholder engagement – including over 40 workshops and 200 bilateral meetings – it has developed practical recommendations for scaling transition finance with credibility and integrity. The TFMR’s final report Scaling Transition Finance: Findings of the Transition Finance Market Review was published in October 2024. The Transition Finance Council The City of London Corporation recently co-launched the Transition Finance Council with UK Government, spearheading the UK's transition finance agenda. The Council’s aim is to leverage the UK’s existing strengths to become the best place in the world to credibly raise transition capital, invest, and obtain financial and professional services in support of UK and global net zero ambitions. The Council includes representation from the financial and professional services sectors, real economy, government, regulators, standard setters, and civil society. The Council has three core functions: Monitor and drive implementation of the TFMR’s recommendations by government, regulators, and the market. Support transition finance capacity building and engagement across a breadth of UK and international stakeholders. Convene working groups to progress priority areas in accordance with the Council’s objectives. Find out more on our Transition Finance Council page. US $7.2tn The green economy’s global market cap, which saw a 14% compound annual growth rate over the past decade £1tn+ The estimated global market opportunity by 2030 for UK companies supporting the transition to net zero US $6.7tn per year of annual investments in transition finance needed to meet global decarbonisation goals c50% of the world’s largest businesses have now made public net zero commitments Get in touch If you’re interested in attending an event or discussing transition finance and ways in which the City of London can support this growing market, please contact us at: sustainablefinance@cityoflondon.gov.uk Find out more about Transition Finance G20 Sustainable Finance Working Group – 2022 Sustainable Finance Report GFANZ – Technical Review Note on Scaling Transition Finance and Real-economy Decarbonisation ICMA – Climate Transition Finance Handbook IPSF - Implementing transition finance principles – Interim report December 2023 OECD – Guidance on Transition Finance: Ensuring Credibility of Corporate Climate Transition Plans RMI – Transition Finance Resource Hub Helping economies worldwide tackle climate challenges The Global City sustainable finance hub The Global City sustainable finance hub