A raft of measures will be unveiled today to boost green investment in the UK, including £5.8 billion of climate finance.
Launching the new Green Finance Strategy today, City minister, John Glen, will stress that the financial services sector must be at the heart of efforts to reduce emissions to net zero by 2050.
The strategy sets out plans to increase investment in sustainable projects and infrastructure, while setting expectations for publicly listed companies and large asset owners to disclose by 2022 how climate change risk impacts their activities. Glen will say that this could lead to mandatory disclosures.
As Utility Week reported yesterday, the plan will also see the establishment of a Green Home Finance Fund to help pilot products like green mortgages, which utilise green finance for home energy efficiency, and incentivise energy efficiency retrofit projects.
The government will also jointly fund the Green Finance Institute with the City of London, aimed at fostering greater cooperation between the public and private sectors and creating new opportunities for investors.
Glen said that through its £5.8 billion of climate funding the UK would play a leading global role in green finance.
The strategy also reveals the launch of a Green Finance Education Charter to make sure financial services-related qualifications and certificates include developing practitioners’ knowledge and understanding of green finance.
It will also clarify the need for financial regulators to have regard for climate change in their work– including the Prudential Regulatory Authority, Financial Conduct Authority and Financial Policy Committee.
Glen said: “The UK has a long history of leading the way in tackling climate change, but we need to do more to protect our planet for future generations.
“The City has a vital role to play in securing a greener future for us all. By investing more in sustainable projects it can not only protect our environment, but also help establish London as the pre-eminent international centre for green finance.
“Today’s Green Finance Strategy will support this ambition, with new initiatives to boost funding for green ventures and ensure the environment is at the centre of all financial decision-making.”
Energy and clean growth minister, Chris Skidmore, said: “As the first major economy to legislate to reach net emissions by 2050, green finance can play a crucial role in our mission to protect the planet while growing the economy.
“Through today’s plans and by putting clean growth at the heart of our modern Industrial Strategy we’ll continue to work with our leading financial services sector to drive even more ambitious action, showing the rest of the world that responsible business can be a win-win for the economy and the environment.”
Chief executive of the Green Finance Institute, Dr Rhian-Mari Thomas OBE, said: “The Green Finance Institute, as the principal forum for collaboration between the public and private sector, is thoroughly committed to identifying and unlocking barriers to the mobilisation of capital towards impactful, real-economy outcomes.
“Today’s launch of the Green Finance Strategy marks another significant milestone in our journey to a zero-carbon and climate-resilient economy.”