Glasgow Financial Alliance for Net Zero to restructure into an independent Principals Group and refocus on removing barriers to mobilising transition capital

The Glasgow Financial Alliance for Net Zero (GFANZ) published a 2025 New Year update setting out a restructure and a shift in priorities from developing transition “building blocks” to tackling barriers that prevent capital being mobilised at scale for net zero, with a particular emphasis on closing the investment gap. GFANZ highlighted progress on closing the data gap through the International Sustainability Standards Board’s global climate reporting standard, with more than 30 jurisdictions representing over 55% of global GDP having announced steps to implement or align with the standards. On the action gap, it pointed to its voluntary transition plan framework, noting that more than 500 major financial institutions representing over USD 100 trillion in balance sheets have developed independent transition plans using the framework, alongside transition-planning guidance introduced or considered by major economies including Australia, China, the European Union, Japan, Singapore, South Africa and the UK. Going forward, GFANZ will shift to an independent Principals Group led by CEOs and leaders from financial institutions and other market participants, including sovereign wealth funds and firms in countries with longer transition pathways. The work programme will concentrate on mobilising finance through public-private partnerships such as country platforms and Just Energy Transition Partnerships, including in Brazil, Indonesia and Vietnam, and on scaling tools with multilateral development banks, including through the World Bank Private Sector Investment Lab, alongside engagement with governments and regulators to address regulatory barriers affecting private investment and the scaling of high-integrity voluntary carbon markets.