Transition Finance refers to investments and financial solutions designed to help industries and economies transition from high-carbon to low-carbon practices. Moody's Ratings' combination of credit rating expertise with deep Sustainable Finance insights can play a critical role in supporting decision-makers on the road to transition, whether by helping to inform financing strategies, meeting investor demand for increased transparency, guiding market participants in understanding the impact of transition finance risks on credit, or providing insightful thought leadership.
Our unique combination of credit rating expertise and sustainable finance experience can support your transition finance journey
Explore how the evolving landscape of Transition Finance is reshaping credit ratings through our latest publications and research
Our net zero assessments (NZAs) highlight that credible plans are pragmatic in their objectives, and aligned with both the commercial strategy of the companies and their shareholders' expectations. Such plans can support engagement with investors, facilitating access to capital.
Global sustainable bond issuance totaled $226 billion in the first quarter of 2025, up 4% from the fourth quarter but down 27% from the same period last year.
Even with robust climate action plans, companies in certain industries may miss their emissions targets because of long-term sector dynamics and external factors beyond their control.
On 29 August, China 's (A1 negative) State Council released an energy transition white paper, laying out a high-level road map to its 2060 net zero emission target. The authorities' commitment to their emission goals is credit positive for the China power sector, especially major rated power companies given their strategic role in achieving carbon transition.
As the gap between aspirations to achieve net zero emissions and reality widens, the risk of rapid acceleration in policy action will grow. Such a scenario would significantly raise transition risks for companies with high carbon exposure.
Companies in carbon-intensive sectors in China (A1 negative) are facing increasing transition risks amid government commitments to decarbonize and growing international scrutiny on corporate carbon transition plans.
The world faces a $2.7 trillion annual climate investment gap by 2030. Can nations invest now to avoid future losses?
Second-quarter issuance totals $238 billion, down 20% from a year earlier. Decline in number of debut issuers poses potential constraint on market growth. Sustainable loan volumes shrink in the first half as SLL quality comes to the fore. ICMA issues new guidance documents and updates in response to changes in the market.
Low-emission hydrogen has the potential to help decarbonize existing use in oil refining and the chemicals industry in the near term, as well as aviation, trucking, shipping, cement, steel and the power sector over a longer horizon.
Carbon capture, utilization and storage (CCUS) technologies have potential for use in highly carbon-intensive industrial processes and sectors that currently have limited means of decarbonizing. In this report, we discuss the current status of the technology, the feasibility of implementation, and the credit implications of broader use of CCUS.
Moody’s Ratings’ perspectives on transition finance and sustainable debt markets are regularly featured in leading global financial media. Our analysis helps market participants understand issuance trends, market structures, and the evolving role of transition finance within global labelled bond markets.
4 March 2026
Moody’s Ratings was featured in Environmental Finance’s Sustainable Bonds Insight 2026 edition. The article includes perspectives from multiple Moody’s Ratings analysts on developments across sustainable and transition‑labelled bond markets, covering issuance expectations, the role of transition finance in hard‑to‑abate sectors, and more.
27 November 2025
Rahul Ghosh, Managing Director and Global Head of Sustainable Finance at Moody’s Ratings was featured in an interview in Environmental Finance. The discussion highlights how policy predictability, credible transition planning, climate resilience and water management are becoming increasingly important credit considerations across sovereigns, sub-nationals and corporates.
16 September 2025
Moody’s Ratings was also featured in Environmental Finance’s Sustainable Loans Insight 2025. The chapter includes perspectives from several Moody’s Ratings analysts on the key trends in the labeled loan markets, factors that are driving the decline in sustainability-linked loan volumes and how traditional banking regulations are shaping sustainability-focused lending across regions.
Moody’s Ratings has been globally and locally acknowledged with awards recognitions in the Sustainable Finance space.
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