Transition Finance Council opens consultation on entity-level guidelines

Feedback is open until September 19 on the Transition Finance Council’s guidelines around what constitutes credible transition finance.

The Transition Finance Council was launched in February 2025 by the UK Government and the City of London to position the country as a leader in transition finance, leveraging its influence as a financial hub.

Last October, the Transition Finance Market Review (TFMR) published a list of recommendations to achieve this goal – including the development of credibility guidelines and policy levers. Now, the Council has opened a consultation on entity-level guidelines to support capital allocation to entities transitioning to more climate-friendly business models.

Complementary and interoperable with TPT and ISSB

The draft guidelines are voluntary and designed to complement existing frameworks such as the Transition Plan Taskforce (TPT) and the International Sustainability Standards Board (ISSB) – both of which help companies communicate their transition plans. 

The guidelines build on these disclosures but can also be applied where a formal transition plan is not yet in place or disclosed. They lay out minimum expectations for credible transition finance, with a focus on how to assess the credibility of a company’s ambition, as well as near-term transition planning and progress.

Transition Finance Council consultation timeline

“To support growth and meet national and corporate climate goals, it is absolutely vital to grow the transition finance market. I look forward to working with colleagues on the Transition Finance Council to help develop the UK into the preeminent global hub for transition finance,” said Council Chair Lord Alok Sharma KCMG, adding that the guidelines are “a critical piece” in developing a UK market aligned with international standards.

Stakeholders across asset management, banking, insurance, corporates, governments and regulators, civil society and public finance are all invited to provide feedback before the September 19 deadline.

Another consultation will be launched around COP30, with the final guidelines due to be published in March 2026.