The Green Finance Taskforce publishes its report, “Accelerating Green Finance” calling on Government to consolidate the UK’s position as a world-leading hub for green finance.
The report, suggests that the creation of a new Green Finance Institute will act as a ‘one-stop-shop’ for all work relating to the sector – from international engagement to green fintech, climate and data science.
It also recommends that Government should issue a green sovereign bond to help fund a number of national green projects, including the UK’s flood defence and resilience.
The global low carbon transition will redefine the UK economy. From the largest infrastructure projects to the fabric of our homes, the transition creates a huge opportunity for the UK to lead the world in cutting emissions while driving growth. The UK’s status as host to a world-leading financial services centre means that the UK has the chance to seize the economic opportunities that green finance offers.
In September 2017, the Government asked leading finance expert and former Lord Mayor of the City of London Sir Roger Gifford to chair an independent taskforce to look at how the UK could fulfil this vision, looking at what systems and structures are needed to make it a reality.
The Taskforce has worked with over 140 organisations across the finance and energy sector, and today, has provided a number of recommendations to Government about policy changes needed to make green finance an integral part of our financial system These include:
- Boosting investment into innovative clean technologies
- Driving demand and supply for green lending products
- Setting up Clean Growth Regeneration Zones
- Improving climate risk management with advanced data
- Building a green and resilient infrastructure pipeline
- Issuance of a sovereign green bond – debt security issued by a national government
Sir Roger Gifford, GFI Chairman said:
“The UK has established itself as a key international financial hub for green finance sector. It’s now time to move things up a gear.
“The opportunities for green investment are plentiful – London’s deep pools of liquidity make it the natural choice for financing these initiatives.
“This report marks a significant starting point for truly propelling green finance onto the national agenda. We look forward to engaging with Government closely on this in the short and long-term future.”
John Glen MP, Economic Secretary to the Treasury and City Minister said:
“The UK is the world leader in green finance, and it’s clear from today’s report why that is. Our first-class talent and unrivalled ambition resulted in over $10 billion being raised through green bonds listed in London in 2017, and we have no intention of slowing down. I want to thank the Taskforce for their hard work, and I look forward to working with the industry on their recommendations to ensure that this market flourishes, not just at home, but across the world.”
The UK government’s Industrial Strategy, published October 2017, recognises Clean Growth as one of the ‘Grand Challenges’ for the UK economy. This creates an enormous opportunity to maximise the advantages for UK industry from the global shift to clean growth through the development, manufacture and use of low carbon technologies, systems and services that cost less than high carbon alternatives.
The Government will respond to the recommendations in full later on this year.
The introduction of a comprehensive and world-leading UK climate-related and sustainability-related financial disclosure framework is a key priority for the City of London Green Finance Initiative (GFI). This report, produced jointly by the Green Finance Taskforce TCFD Workstream and the GFI Working Group on Data, Disclosure and Risk, sets out how and why the UK can introduce a new climate-related and sustainability-related financial disclosure framework. There are strong economic and financial arguments for greater disclosure of environment-related risk, opportunity and impact – particularly those related to climate change. There are also compelling reasons for UK leadership on these issues.
Members of the Green Taskforce:
- Sir Roger Gifford (Chair), Representing the Green Finance Initiative
- Nikhil Rathi, CEO, London Stock Exchange Group
- Michael Sheren, Senior Adviser, Bank of England
- Robert Trezona, Head, Cleantech, IP Group
- Dr Rhian-Mari Thomas, Managing Director, Barclays
- Dr Daniel Klier, Group Head of Strategy and Global Head of Sustainable Finance, HSBC
- Edward Northam, Head of Investment Banking, Green Investment Group
- Charlotte Morgan, Partner, Global Energy and Infrastructure Group, Linklaters
- Mark Zinkula, CEO, with Meryam Omi, Head of Sustainability and Responsible Investment Strategy, Legal and General Investment Management
- Dr Steve Waygood, Chief Responsible Investment Officer, Aviva Investors
- Emma Howard Boyd, Chair, Environment Agency
- Bruce Davis, Co-Founder, Abundance
- Fiona Reynolds, Managing Director, Principles for Responsible Investment
- Nick Molho, Executive Director, Aldersgate Group
- Dr Ben Caldecott, Founding Director, Oxford Sustainable Finance Programme, University of Oxford Smith School of Enterprise and the Environment
- Dr Paul Fisher, Senior Associate, University of Cambridge Institute for Sustainability Leadership
- Rowan Douglas, Chair and CEO of Capital Science & Policy Practice, Willis Towers Watson