The Policy Liaison Group’s roundtable considered the findings of the government’s Transition Finance Market Review (TFMR), a major initiative designed to strengthen the UK’s position as a global hub for transition finance. At a time of increasing international competition for green investment, the discussion explored the barriers preventing capital from flowing towards decarbonisation projects and the policy measures needed to unlock long-term growth. Participants also examined the importance of credible transition planning, clearer market signals and stronger coordination between government and the financial sector.
Key contributors:
This roundtable examined the role that transition finance can play in supporting the UK’s net zero ambitions while enhancing economic competitiveness. Participants highlighted that although investor appetite for transition opportunities is growing, uncertainty around policy, regulation and the credibility of transition activities continues to constrain investment. Discussion focused on the need for well-defined sector pathways, practical transition plans and stronger alignment between government policy and financial markets. The conversation also explored the challenge of adequately pricing climate-related risks, noting that existing financial models often fail to capture the long-term economic impacts of climate change and biodiversity loss.
