HM Treasury has extended the Transition Plan Taskforce's (TPT) mandate until at least 31 July 2024, with potential for a further extension of three months to the end of October 2024, in order to support the Transition Finance Market Review (TFMR).

The TFMR, which launched earlier this week (22 January 2024), is expected to look at what the UK financial and professional services ecosystem needs to do to become a leading hub for and provider of transition financial services.

In particular, it will consider how to create the conditions for scaling transition-focussed capital raising with integrity, maximising the opportunity for UK based financial services, and positioning the UK’s professional services ecosystem as a global hub.

TPT's extended mandate aligns the timescales for the two projects, in an effort to ensure that the TPT is able to fully contribute to the work of the review, drawing on the knowledge and networks that it has already established on transition finance and transition plans, including on transition finance instruments, international standards, and ensuring credibility and global alignment.

Announcing the extension, TPT pointed out that, as the global discussion on transition plans has progressed over the last few years, it has become clear that credible transition plans are expected to play a central role in the development of high-integrity transition finance approaches.

Indeed, the taskforce pointed out that beyond the UK, many jurisdictions and global multilateral initiatives are now considering the connections between the two.

Given this, it suggested that creating a period of overlap between the lifetimes of the TPT and the TFMR will enable the UK to fully support these developments at home and abroad.

The extension is also expected to allow the taskforce to continue engaging internationally to support the development of globally-consistent approaches on transition plans and transition finance, and to support market actors with the guidance and tools they need to deliver high quality transition plans.

The TPT was first announced at COP26 in Glasgow and launched in April 2022 with a two-year mandate to deliver the gold standard for transition plans.

It has since completed the completed delivery of the tasks listed in its Terms of Reference, including the publication of the TPT Disclosure Framework together with implementation guidance and draft sector guidance, informed by over 600 organisations around the world.

The TPT is also on track to share its final outputs this year, including final sector-specific deep dive guidance, notes on adaption, nature, just transition, and a forward pathway on transition plans, with considerations for the maintenance of a strong ecosystem around transition plans.

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