Global Regulation Tomorrow

On 29 October 2024, the Glasgow Financial Alliance for Net Zero (GFANZ) launched consultations on Nature in Net-zero Transition Plans and on Index Guidance to Support Real-Economy Decarbonisation. It also published a report setting out Case Studies on Transition Finance and Decarbonisation Contribution Methodologies.

Consultation on Nature in Net-zero Transition Plans

This consultation considers how nature-related levers can support net-zero commitments by reducing greenhouse gas (GHG) emissions from land, ocean and freshwater sources, and by creating or increasing GHG sinks. It also sets out supplemental, voluntary guidance on how to incorporate nature-related levers as part of a strategic, credible net-zero transition plan (NZTP). The consultation paper is supplemental to the GFANZ NZTP framework published in 2022.

Financial institutions and other interested parties are encouraged to respond to this consultation here to inform the publication of final supplemental guidance, which is expected in Q1 2025, and to start to work with these concepts to accelerate the net-zero transition and drive financial resources toward solutions. The consultation closes on 27 January 2025.

Consultation on Index Guidance to Support Real-Economy Decarbonization

This consultation outlines potential guidance that index participants (i.e. index providers, data providers, stock exchanges, asset owners, asset managers and other investors) may take to voluntarily and independently develop and adopt indices that support real-economy decarbonisation.

GFANZ notes that the consultation paper and feedback received will inform the final paper, to be released in Q1 2025. It asks stakeholders to respond to the consultation here, by 9 January 2025.

Case Studies on Transition Finance and Decarbonisation Contribution Methodologies

The case studies report aims to illustrate how financial institutions have independently developed and implemented approaches that support GFANZ’s four key transition financing strategies, and showcases results from the pilot of emergent decarbonisation contribution methodologies. The case studies provide perspectives of specific financial institutions, with the intention of sharing learnings which may benefit other financial institutions independently involved in transition finance.