# What is transition finance, and could a steel or cement MSME be ready for it?

Canonical: https://senseible.earth/answers/transition-finance-hard-to-abate-msme-readiness

Transition finance supports companies in heavy emitting sectors to cut emissions over time, rather than only funding activities that are already green. Readiness means a measured baseline, a credible plan with milestones, and records that show progress.

## What lenders may look for

- A baseline from real bills and production.
- A plan: fuel switch, efficiency, electrification, with dates.
- Interim targets they can check.

## Why baseline matters

Without a measured starting point, progress cannot be shown, so most frameworks start there.

## Caution

Definitions differ between lenders and taxonomies, and none guarantees funding.

## What Senseible does here

Senseible turns bills and fuel invoices into a dated, traceable emissions record, the kind of evidence lenders may ask for. Lenders decide, and financing is never guaranteed.

- [India climate finance taxonomy](https://senseible.earth/answers/india-climate-finance-taxonomy-what-msmes-need)
- [MSME transition plan](https://senseible.earth/answers/msme-climate-transition-plan-what-to-include)
- [Green loan or SLL](https://senseible.earth/answers/green-loan-or-sll-which-suits-msme)

Sources: [Loan Market Association, green and sustainability-linked loan principles](https://www.lma.eu.com), [International Energy Agency](https://www.iea.org), [Reserve Bank of India](https://www.rbi.org.in)

Last reviewed 2026-10-22.