Transition finance offers a flexible approach for development partners to respond to the changing financial needs of developing countries undergoing transition. The transition finance ABC methodology, part of the transition finance toolkit, provides methodological guidance, metrics, data references and analytical interpretation for users to conduct transition finance diagnostics and country studies.

The paper is organised along the sections: assessing, benchmarking and counselling. The first section, assessment, outlines an economic and socio-political mapping of the country and helps to identify the specific transition a country is undergoing. Benchmarking, section two, helps to form country peer groups and contrast development finance to these countries. Building on the analytical results from the first two sections, the last section on counselling gives exemplary policy guidance to respond to the observed transition challenges.