New WFE Guide Helps Issuers Access Transition Finance

The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has published a Guide with practical direction for issuers on how to maximise their access to transition finance.  In 2024, global climate finance is estimated to have exceeded $2 tr, though this constitutes a mere fraction of the investment needed to align global economies with net-zero pathways. As net-zero deadlines approach and decarbonisation urgency intensifies, a growing share of sustainable capital is expected to be directed towards transition finance, presenting a huge opportunity for businesses.  The new WFE Guide, Accessing Transition Finance: A Practical Guide for Issuers, highlights the significant and rapidly expanding opportunities for businesses, including those in hard-to-abate industries and fast-growing, energy-intensive digital sectors, to secure funding that supports their transition towards Net Zero and broader sustainability goals. It outlines the different forms of transition finance that are available and emerging, provides insights on which forms of financing may be most appropriate for different types of business, and provides guidance on how businesses can maximise their eligibility for each type of financing.   The most significant vehicles for transition finance are currently centred around debt offerings, though there is an expectation that, just as with green finance, transition-related equity offerings such as designations will start to emerge.  To maximise their access to new and growing streams of transition finance, organisations must:  Build a credible, strategic transition plan;  Futureproof their approach using key global standards and initiatives;  Choose the right transition-finance instrument for their business, taking into account the key considerations listed in the Guide; and  Carefully consider evidence and assurance.  Taking these steps will position businesses to capture primary and secondary-market demand for transition-positive investments, diversify their investor base, and enhance long-term resilience.  Nandini Sukumar, CEO of the World Federation of Exchanges, said, “Only public markets can deliver the capital needed for transition finance to flourish because they have the requisite credibility, built on issuer disclosures and transactional transparency, to support robust, high-integrity markets. As clearer taxonomies and disclosure requirements evolve, the transition-finance market will become increasingly structured. Businesses that use this Guide to take early action will benefit from enhanced value creation and protection opportunities, and will set themselves up for resilient long-term growth.”  The WFE will be hosting a webinar to introduce the Guide and present our key advice on 9 March 2026, where we will be joined by expert speakers including from Nasdaq and the UK Transition Finance Council. Read the full paper here.