Green Finance Strategy unveiled
The UK government has unveiled new plans to help the financial sector tackle climate change in its highly anticipated Green Finance Strategy.
All listed companies and large asset owners will be expected to report in line with the Task Force on Climate-related Financial Disclosures (TCFD) under the plans.
A joint taskforce of regulators will explore the appropriateness of mandatory disclosures, and a set of sustainable finance standards will also be developed.
Moreover, a Green Finance Education Charter will be launched to ensure financial services-related qualifications develop practitioner’s understanding of green finance.
Unveiling the strategy yesterday, economic secretary to the Treasury, John Glen, argued that financial services will play a bigger role tackling climate change than any other sector.
“Investing more in sustainable projects can not only protect our environment, but help establish London as the preeminent international centre for green finance,” he continued
“Today’s 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.”
The UK has cut its CO2 emissions by 42% since 1990 while growing the economy by 72%, and last month became one of the first countries to set a 2050 net zero emissions target in law.
The Green Finance Strategy also outlines how regulators will now have to take account of the Paris Agreement when carrying out their duties.
Moreover, UK Export Finance will make climate-related financial disclosures in its accounts in line with the TCFD as soon as practicable after the 2020/21 financial year.
And a new Green Home Finance Fund will provide £5m to the private sector to promote the adoption of green finance products and services such as green mortgages.
"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," Glen said.
"The City of London has a vital role to play in securing a greener future for us all."
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Chris Seekings is a reporter for TRANSFORM