Corporate Transition Assessment (CTA) Playbook

A Practical Framework for Financing India’s Real-Economy Transition

Developed by Rocky Mountain Institute (RMI) and Climate Policy Initiative (CPI), the India-specific Corporate Transition Assessment (CTA) Playbook provides financial institutions with a structured, decision-useful approach to assessing how companies will navigate the low-carbon transition – and what that means for credit risk, portfolio resilience, and financing strategy.

As India moves toward its net-zero goals, transition risks and opportunities will increasingly influence asset values and borrower performance. Financial institutions need a clear, practical way to evaluate whether corporate transition plans are credible, feasible, and financeable within India’s policy and market context. The CTA framework provides that approach.

Why It Matters

India’s transition will significantly affect emissions-intensive sectors such as power, steel, and cement – sectors that account for substantial lending exposure.

Without robust assessment tools, institutions risk:

• Financing assets that may lose competitiveness over time
• Underestimating future credit and portfolio risks
• Overlooking viable low-carbon investment opportunities

The CTA helps translate climate commitments into concrete financial analysis.

What the CTA Framework Enables

The CTA is a structured due diligence framework that provides a forward-looking view of corporate transition readiness. It enables institutions to:

• Assess exposure to transition risks at the asset level
• Evaluate feasible decarbonization pathways under Indian conditions
• Understand how current and planned investments affect future risk
• Inform lending, investment, and client engagement decisions

What Makes the CTA Different

Asset-Level Analysis

Rather than relying only on company-wide targets, the CTA examines the specific assets a company operates and plans to build. This helps identify:

• Where emissions are concentrated
• Which assets face higher transition risk
• Potential stranded-asset and refinancing exposure

Feasibility Mapping

Ambitious targets alone do not guarantee delivery. The CTA evaluates external enabling conditions in India, including:

• Domestic demand for low-carbon products
• Policy frameworks, incentives, and regulatory drivers
• Technology availability, infrastructure, and cost trajectories

This ensures that transition plans are assessed not only for ambition, but for practicality and bankability.

From Framework to Practice

The Playbook provides step-by-step guidance for integrating the CTA into banking processes – across transactions, client engagement, and portfolio management.

It also offers a prioritization approach, recognizing that not every client requires a full assessment. CTAs deliver the greatest value where financial exposure is significant, emissions intensity is high, or transition dynamics could materially affect credit outcomes.

What the Playbook Provides

• A structured, India-tailored CTA methodology
• Practical guidance for implementation within financial institutions
• Tools for prioritization, data collection, and analysis
• Insights for embedding transition considerations into credit and investment decisions
• A pathway to scaling credible transition finance in India

Enabling India’s Transition

India’s low-carbon transition will require large-scale capital mobilization alongside robust risk management. Financial institutions are central to directing capital toward viable pathways while safeguarding financial stability.

The CTA Playbook equips banks and financial institutions with the analytical foundation needed to move from climate commitments to informed, actionable decisions – accelerating credible, real-economy decarbonization in India.

download the playbook here