Financing real economy transitions in emerging markets: Learnings from global experiences

Corporate climate transition plans, once seen as internal strategy documents, are now emerging as critical tools to unlock sustainable finance and guide real economy decarbonisation. The virtual dialogue brought together Indian and emerging market voices to examine how credible transition planning can serve as a linchpin for capital mobilisation, regulatory alignment, and long-term resilience. The webinar was divided into two sessions- The first panel discussion focused on corporate transition plans and system-level enablers while the second panel reflected on the role of regulators in strengthening transition plan disclosures.

Greening the real economy in emerging markets like India presents a dual challenge: the need to decarbonise while meeting developmental priorities. At the same time, it offers a historic opportunity to recalibrate capital flows. India’s climate goals demand an estimated $10 trillion over the coming decades, an investment that must be front-loaded to avoid a disorderly, and more expensive, transition. This makes access to global capital essential. Yet, financing will only follow credible pathways. The first panel delved into what makes a transition plan not only ambitious but effective.

The message was clear: corporate decarbonization strategies must be rooted in local context and supported by enabling ecosystems. In India, a handful of major corporates have declared net-zero ambitions, but comprehensive, forward-looking transition plans remain rare. With coal still dominant and transitional technologies underdeveloped, Piyush Jha from Tata Steel emphasized that India must carve its own path, one that is pragmatic, yet forward-looking. As greenwashing concerns grow, particularly in hard-to-abate sectors like steel and cement, the need for robust, transparent, and context-sensitive planning has become more urgent. Investors, as Ivy Lau, Mizuho Bank noted, are moving beyond climate pledges to assess tangible progress: Are companies running pilots? Shifting fuels? Making measurable investments? Without demonstrable movement, access to transition finance, whether through bonds, loans, or blended capital, will remain limited.

India’s unique context further reinforces the need for customised strategies. Gireesh Shrimali, Oxford Sustainable Finance Group, highlighted that credible national transition plans must be backed by concrete policies and actions, as national ambition is ultimately the sum of all corporate ambitions. Without alignment and credibility at both levels, national targets risk remaining unachieved.

Speakers also highlighted the enabling role of ecosystem levers, from defining credible transition assets and decarbonisation roadmaps to building assurance capacity and sectoral guidance. With too many tools and benchmarks in play, companies need clarity and convergence to plan effectively and signal progress to stakeholders. Ultimately, transition plans should be seen as tools to inform finance, policy, and technology ecosystems, and in turn be shaped by them.

The second session turned the spotlight on regulatory frameworks and the evolving role of supervisors. Dien Sukmarini, OJK, emphasized that regulatory guidelines should be created through regular engagement with industry players to understand their challenges and expectations. Disclosure, when mandated, must be matched by supervisory review, board-level capacity-building, and forward-looking metrics. Only then can transition plans shift from paper to practice. Ramnath N. Iyer, IEEFA, emphasised the importance of robust taxonomies that define what constitutes "transition", particularly for hard-to-abate sectors navigating complex shifts.

The discussion reaffirmed that transition is not a cost, it is a strategic lever for resilience and growth. As Ira from CETEx noted, transition planning not only mitigates climate risk but improves business resilience, reducing exposure to energy volatility and physical climate risks. While transparency is essential, transition planning frameworks must also account for external dependencies and the unpredictable nature of policy, technology, and physical climate risks.

As Neha Kumar, Climate Bonds Initiative, summarized, ambition is a two-way street, both corporates and policymakers need to raise the bar. Transition plans should be treated as growth strategies, not just environmental blueprints. With sectoral roadmaps, robust taxonomies, investor alignment, and regulatory clarity, India can move from commitments to scalable, ecosystem-wise implementation.

Transition planning, when done right, becomes more than a corporate tool, it becomes a platform for coordination across markets and policy. The path to net-zero will be paved by those who plan ambitiously, act decisively, and collaborate widely.

About the India initiative on Climate Risk and Sustainable Finance

"India Initiative on Climate Risks and Sustainable Finance (IICRSF)" led by the Climate Bonds Initiative with its partners ODI Global and auctusESG is a collaborative endeavor with the overarching purpose of supporting the efforts of financial regulators and policy makers at navigating the imminent transition, and simultaneously preparing and engaging with banks, DFIs, businesses on disclosures, transition plans and finance, building the required narrative and consensus, and supporting with the tools needed to augment financial flows from domestic and international https://www.climatebonds.net/regions/south-asia

Webinar event with IEEFA, Climate Bonds, ODI Global and auctusESG

Article also published on Climate Bonds