Climate change maintains its importance as a fundamental issue that needs to be resolved across the world. Financing types that have been developed to reduce global emissions in order to financially support the efforts on climate change and have gained a foothold in the market have generally focused on financing green (carbon-neutral) projects. Brown sectors such as petroleum, cement, chemistry, transportation and aviation, which have an important place in the world economy, could not benefit from traditional sustainable finance because they were not green. Although transition finance has emerged recently for the financing of brown sectors, some problems that it has and specific to the introduction, have prevented its development. Similarly, transitional bonds that emerged to provide financing to brown sectors failed to show the expected development. Among the reasons for this situation, there are undoubtedly some problems specific to transitional bonds. By solving these problems, transitional bonds will be able to reach their full potential.