Transition finance is gaining prominence, but progress remains uneven as asset owners navigate fragmented standards, unclear policies and limited project pipelines. Many funds see the greatest impact in engaging high‑emitting sectors, where targeted investments can drive meaningful decarbonization. However, inconsistent taxonomies, data gaps and credibility concerns around transition plans continue to hinder deployment at scale.

Public funds increasingly prefer private market channels, where they can exert greater influence, shape corporate strategy and accelerate operational transformation. Yet emerging markets — where transition opportunities are most significant — remain challenging due to currency risk, governance constraints and limited project scale.

Blended finance offers a mechanism to unlock these markets by reducing risk and mobilizing private capital, but practical execution lags. To meet global net‑zero goals, asset owners must champion interoperable standards, work with policymakers, and collaborate across the investment ecosystem to build credible, scalable pathways for transition investment.