Transition Finance

Transition finance refers to funding aimed at supporting businesses and projects that are making efforts to move toward more sustainable and environmentally friendly practices. It helps companies, especially those in high-emission industries (like fossil fuels), to invest in cleaner technologies and reduce their carbon footprint. This financial support can come from investors or financial institutions willing to allocate funds for such transitions, recognizing that gradual improvements can lead to significant environmental benefits over time. The goal is to facilitate a shift towards a more sustainable economy while still acknowledging the complexities of current practices.