Masterclass in Transition Finance and Sustainability-Linked Instruments

By the end of this Masterclass participants will be able to:

• Understand the purpose of transition finance and the emergent financial products and services supporting counterparties, such as companies, sovereigns, and individuals, realise alignment with environmental and social sustainability.
• Analyse the role of the public sector in adopting and promoting transition financing instruments and how they are shaped by public policy. They will also compare the motivations of market participants internationally and investigate what has or has not worked.
• Assess how and why sustainability-linked financing products are evolving in different jurisdictions and examine the challenges and opportunities this creates.
• Understand how transition finance could improve the credibility of net-zero commitments and transition plans.

 Session one

• Introduction to course
• Sustainability transition and transition finance
• Transition risks and opportunities in the financial system
• Transition finance and its relation with corporate sustainability performance
• Transition finance frameworks
• Financial products and regulations
• Case studies

Session two

• Fundamentals of sustainability-linked bonds and loans
• Landscape of the market
• Sustainability-linked financing frameworks and transition plans
• Performance so far, including challenges and risks
• Case studies: sovereign sustainability-linked bonds

Session three

• Stakeholders: capital providers and counterparties – issuers, investors, banks, NGOs
• Incentive structures: financial, regulatory, managerial, and reputational
• Key performance indicators and targets: setting KPIs and MRV
• Case studies