Supporting COP outcomes with transition plans

In view of the conclusion of the 28th Conference of the Parties (COP28), the Transition Plan Taskforce (TPT) has published a press statement. In it, the TPT presents the key issues addressed at the COP28 and its own stance on those issues. Thereafter, the conference highlighted the importance of transition plans in addressing climate change. In fact, transition plans are becoming a crucial part of the enabling environment, promoting transparency and standardization, which in turn enable investors, lenders, regulators, and governments to allocate capital, understand market transitions, and support national ambitions to reach the Paris climate goals. The International Sustainability Standards Board (ISSB) is seen as the global baseline for sustainability-related reporting, with close to 400 organizations committing to adopt or use its climate-related reporting, including transition plan-related requirements.
Momentum is growing for transition planning in various countries and regions, particularly in emerging markets and developing economies. Converging around best practices for credible transition plans is essential for transition finance, as discussed during COP28. The TPT Framework complements and builds upon the ISSB’s reporting standards, allowing jurisdictions to adopt global ISSB Standards and introduce local transition plan requirements alongside these standards.
The Global Stocktake (GST) text, which evaluates how well the world has been doing in tackling climate change and what else needs to be done in this context, emphasizes the need for credible transition plans for every financial institution and company to fit into the global imperative of moving away from fossil fuels. The TPT supports organizations in building credible transition plans by providing tools and sector-specific deep dives. The GST text also acknowledges the importance of sufficient capital for the transition, investment barriers, and the role of governments, regulations, and non-state actors in unblocking these barriers and reaching the required scale of investments.
With the increasing recognition of transition plans‘ significance, the TPT looks forward to contributing further to the international conversation on climate transition in 2024.