cover image: An Introduction to Green and Transition Finance

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An Introduction to Green and Transition Finance

17 Sep 2024

Introduction The green transition of economies has become imperative, and governments, regulators, and the private sector across geographies and sectors are increasingly implementing decarbonising measures and strategies aimed at reducing emissions intensities, greening the financial system, and fostering green business opportunities. However, the financing landscape is skewed towards sectors focused on mitigation, including renewable energy proliferation and transport, which have developed a strong business case and garnered substantial political support compared to other energy-intensive and hard-to-abate sectors. Achieving a low-carbon economy necessitates an inclusive approach to financing the transition, especially considering the needs of Emerging Markets and Developing Economies (EMDEs), and focusing on hard-to-abate sectors, which have substantial carbon-removal potential. Process and energy-related emissions from hard-to-abate sectors collectively contribute to over 40 percent [1] of global greenhouse (GHG) emissions. These emissions may arise from production (in the case of steel, cement, aluminium, chemicals, pulp, and paper), energy (such as in oil and gas), and transport (e.g., aviation, shipping, and trucking). Ensuring the effective and timely transition of hard-to-abate sectors is therefore critical to achieve net-zero targets.
india energy efficiency greenhouse gas emissions sustainable infrastructure electrification emissions reduction carbon capture green finance low-carbon economy decarbonisation financial innovation climate investment industrial emissions economics and finance green transition clean hydrogen net-zero targets hard-to-abate sectors financing transition decarbonising measures hard-to-abate industrial sectors

Authors

Neha Khanna, Mannat Jaspal

Attribution
Neha Khanna and Mannat Jaspal, “An Introduction to Green and Transition Finance,” ORF Issue Brief No. 730 , September 2024, Observer Research Foundation.
Pages
20
Published in
India

Table of Contents

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