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

The Glasgow Financial Alliance for Net Zero announced that it will restructure and shift its work from developing core transition “building blocks” toward addressing barriers to mobilising capital, with a renewed focus on closing the investment gap for the net-zero transition, particularly in emerging markets and developing countries. The update highlights progress on disclosure and transition planning, pointing to the International Sustainability Standards Board (ISSB) climate reporting standards building on the Task Force on Climate-related Financial Disclosures (TCFD), with more than 30 jurisdictions representing over 55% of global GDP having announced steps to implement or align with ISSB standards. It also cites uptake of GFANZ’s voluntary transition plan framework, informed by the Financial Stability Board (FSB) and the G20 Sustainable Finance Working Group (SFWG), with more than 500 major financial institutions representing over USD 100 trillion in balance sheets having developed independent transition plans using the framework. Going forward, GFANZ will transition to an independent Principals Group led by CEOs and other financial leaders, and will prioritise public-private partnership mechanisms such as country platforms and Just Energy Transition Partnerships (JETPs) including Brazil, Indonesia and Vietnam, alongside continued work with multilateral development banks (MDBs) on tools to scale private finance, including via the World Bank Private Sector Investment Lab, and engagement with governments and regulators on regulatory barriers, enabling policy environments and high-integrity voluntary carbon markets.