As investors grapple with the financial implications of decarbonisation, transition risk has become a defining theme across fixed income markets. ICMA debuted their Climate Transition Bond guidelines at the end of 2025, going beyond the Green Bond Principles to mark a major step in supporting credible transition financing. Japan has emerged as a frontrunner, issuing over $35.8bn in Climate Transition Bonds to fund industrial transformation and emission‑reduction initiatives. This session explores how CTBs are structured and how proceeds are allocated, and looks at potential implications of bond market volatility, with a case study on the JCTBs.