Transition Finance Guidance（Final Version）: by the Transition Finance Study Group in Japan（RIEF）
The Transition Finance Study Group (TFSG), formed by academic researchers specialized in green & sustainable finance in Japan, organized by the Research Institute for Environmental Finance (Japan), has published final version of the “transition finance guidance”.
They have published interim report in April 2020. Final version has been developed there and expanded their transition targets not only project based but also company based. They are referred in the documents as “A-Type(A=Assets)”and “C-Type(C=Corporate entities and companies).
The reason we made the guidance for transition finance is to contribute to establish common global standard for the transition finance rather than national one. Because what we are required from future societies or generations are to change and transform existing global system based on using fossil fuel energy and mass disposal type into more sustainable ones for both our society and our planet. To do so, we should support existing carbon intensive business activities and corporate entities to change and convert more green and clean ones.
Providing money to new green projects is necessary but not enough to changing whole economic and social system by smooth and cost-effective ways. Because we have had huge volume of old type projects, corporate entities and related systems around the world. We can call them “Brown projects and brown corporates”. In addition, we need to build up global transition finance standards consistent with global financial markets.