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In this insightful interview, Hilkka Komulainen emphasizes that transition finance is not a one-size-fits-all concept but a vital mechanism to fund the shift toward a low-carbon economy. She distinguishes it from traditional green finance by highlighting its focus on supporting emission reductions in sectors that are not yet fully sustainable.
Transition finance, she notes, is about enabling the transformation of high-impact industries like transport, heavy industry, and energy, rather than simply investing in already “green” assets.
Komulainen warns of the liberal use of the term "transition" and stresses the importance of credibility and science-backed frameworks, such as the Science-Based Targets initiative and IEA scenarios, to ensure meaningful impact. She acknowledges challenges from policy shifts and renewed fossil fuel commitments but remains optimistic. Opportunities abound in real assets and infrastructure—from battery storage to grid upgrades—especially in markets like the UK, US, and Australia.
She calls for continued collaboration and knowledge-sharing at industry events to maintain momentum and resilience amid geopolitical and economic uncertainty.