below provides an overview of existing transition finance approaches (taxonomies, guidelines, frameworks, white papers, etc) developed by a variety of actors, namely jurisdictions, regional bodies, think tanks, multilateral development banks and market actors. The table summarises the analysis of these approaches along several dimensions, such as their focus, DNSH approach, the transition goal/pathway, whether it includes transition definitions, criteria, or thresholds, whether it applies to an activity or entity, relevant transition use cases and whether they consider just transition factors. The table builds on, updates and extends the analysis conducted in (Tandon, 2021[1]) and (Muller and Robins, 2022[2]).

below provides a mapping of existing initiatives focused on transition plans and compares them across several key components identified in Chapter 4 to ensure the credibility of transition plans.

The OECD created an industry survey to collect views on the topic of transition finance of different stakeholders, including financial institutions, non-financial corporates, academia, data and service providers, public finance institutions (such as central banks and development banks), and non‑governmental organisations and other relevant actors. The purpose of the survey was to gather insights on the perceived barriers and enabling factors to accessing transition finance, the most important elements to a credible corporate transition plan, as well as the market’s perspective on current developments.

In order to shed light on the potential and growth challenges of sustainability-linked financial instruments, this Annex provides case studies on companies that raise sustainability-linked finance for their decarbonisation in hard-to-abate sectors, selected from emerging and developing economies. Illustrative examples include sustainability-linked instruments issued by Indorama Ventures (chemicals, Thailand), CEMEX (cement, Mexico) and JSW (steel, India). Countries were selected to focus on emerging and developing countries, and where possible, to take advantage of contacts through the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) programme. Companies headquartered in these countries were selected based on whether a sustainability-linked financing framework with sufficient detail was put in place in the past 12 months (further background on the companies below).

The Do-No-Significant-Harm Principle refers to the process of not supporting or carrying out any economic activities that do significant harm to an environmental objective, such as climate change mitigation, adaptation, protection of biodiversity and ecosystems, protection of water and marine resources, pollution prevention and control, circular economy (European Commission, 2021[1]).