2 July 2019 – Today the UK government has launched its Green Finance Strategy, setting out its green finance objectives and ambitions.
The strategy sets out plans to increase investment in sustainable projects and infrastructure, while ensuring the UK remains an international leader in decarbonisation and meets its ambitious 2050 net zero carbon emissions target.
It also builds on findings from the Task Force on Climate-related Financial Disclosures, led by former New York Mayor Michael Bloomberg and Bank of England Governor Mark Carney. This includes setting expectations for publicly listed companies and large asset owners to disclose by 2022 how climate change risk impacts their activities.
The strategy, which is announced just days after the UK became the first major economy to enshrine net zero by 2050 into law, includes new policies and proposals under three key themes:
- Greening finance: ensuring climate and environmental factors are embedded in mainstream financial decision-making.
- Financing green: accelerating investment to support the UK’s Clean Growth Strategy and environmental ambitions.
- Capturing the opportunity: ensuring the UK captures a substantial market share of the growing global green finance market.
Commenting on the announcement Eliot Whittington, Director of The Prince of Wales's Corporate Leaders Group (CLG) said:
“It's great that the UK government has hit the ground running after last week's legislation of a new 'net zero' target for the UK. Delivering on this will involve modernising the UK economy and the strengths of the UK financial services industry should be guided towards mobilising the significant investment required – an effective green finance strategy will be an essential plank in delivering on the UK's climate and economic goals."
Also commenting, Dr Nina Seega, the University of Cambridge Institute for Sustainability Leadership's Research Director for Sustainable Finance, said:
"The new Green Finance Strategy opens the door for the UK to become a major sustainable finance hub, delivering expertise and innovation to the global economy. Aligning the regulatory framework to unlock green finance flows and increased capacity to deliver sustainable finance will be key to delivering the UK’s commitment to net zero emissions by 2050.
This strategy is a good indication the UK Government is serious about embedding climate and environmental factors in financial decision-making and accelerating green investment. If this leadership is delivered through a co-ordinated approach with regulatory authorities and the City, it has the potential to position the UK at the heart of the growing global green finance market.”
