Transition finance is gaining traction as world leaders seek to achieve both energy security and clean energy transitions. The International Energy Agency hosted its first Virtual Workshop on Transition Finance on 22 May 2025, drawing more than 70 participants from industry, government and the financial sector. The event provided a forum to discuss the state of play and the key barriers to scaling up cross-border capital flows that can enable transition efforts.
During the event, participants emphasised the importance of transition finance and recognised the need to scale up efforts to fill the existing investment gap, especially in emerging markets and developing economies (EMDE). Key messages from the workshop include:
- Effective policy design is essential to support market development. Clear government guidance, transition finance taxonomies and sector-specific transition roadmaps (that consider different national and industry-specific contexts) are drivers for the development of transition finance in various regions. Existing policy frameworks offer valuable lessons for other regions seeking to advance transition finance.
- Leading companies' initiatives provide practical examples that can guide others entering the transition finance space. However, while support for frontrunners is important, it is equally vital to ensure that the transition finance ecosystem is accessible to EMDE where capital mobilisation is most urgently needed. Enhancing cross-border capital flow and inclusivity of mechanisms including interoperability is therefore a key priority.
- Support is vital for transition finance to succeed. To enhance credibility of transition finance, the initial planning, monitoring of progress, and engagement are essential to reflect the inherently dynamic nature of transition activities. At the same time, these necessary processes must be balanced with the need for appropriate incentives to ensure the effort and complexity involved in transition-aligned investments are matched by meaningful support and recognition.
The discussions from the workshop will inform an upcoming IEA report on transition finance in the energy sector, scheduled for publication in Q3 2025.
The workshop featured nine expert speakers who presented at the following three sessions:
Session 1: Transition finance for energy companies
- Hirofumi Sakioka - Senior Supervisor, JERA
- Syarina Yaacob - Lead (Corporate and Project Finance), Tenaga Nasional Berhad (TNB)
- Thomas Leonard - Head of Sustainability Services
Session 2: Importance of governments
- Takako Onitsuka - Director, Environmental Finance Office, GX Group, Ministry of Economy, Trade and Industry of Japan (METI)
- Eugene Wong - CEO, Sustainable Finance Institute Asia
- Jane Goodland - Group Head of Sustainability, London Stock Exchange Group (LSEG)
Session 3: Transition finance for financial institutions
- Naoaki Chisaka - Managing director, EMEA Advisor to Group Chief Sustainability Officer, Mizuho Financial Group
- Nicholas Pfaff - Deputy CEO and Head of Sustainable Finance, International Capital Market Association (ICMA)
- Divya Bendre, Managing Director, Sustainable Banking Solutions Group, Bank of America Securities (BofA Securities)
