Investment revolution needed to tackle climate in London

The London Sustainable Development Commission has said that the capital will only become a more resilient city if there is a complete restructuring of green finance systems across London.

The Financing London’s Future report estimates that more than £1 trillion of investment will be needed to fund new infrastructure in the city by 2050, regardless of whether it is clean or dirty. The LSDC says that the funding must be channeled appropriately to ensure the city remains competitive in the global economy and resilient to the impacts of climate change and other city-level pressures.

In order to achieve this, the LSDC says substantial powers must be devolved from central government to the Mayor of London’s office. Currently, Mayor of London Sadiq Khan’s existing powers only account for around half of London’s emissions.

His landmark declaration of a climate emergency signals his intention to lead London’s efforts to avoid a global average temperature rise beyond 1.5°C and the threats this presents to the future of our planet.

In addition to this, LSDC calls for the establishment of an urgent taskforce, comprised of all key stakeholders including public and private sector representatives, to determine how a ‘London Future Finance Facility’ (LFFF) could be established. Uniquely, it will have a focus on delivering a just transition supporting disadvantaged communities and creating jobs for all. However, it would need significant devolved powers from government in order to deliver the investment London needs to decarbonise and thrive and be resilient in a climate-changing world.

Dr Ashok Sinha, chair of the LSDC, said: “Such green finance flows as are issuing from the City are largely contributing to decarbonising other metropolises across the world rather than our own. This is perverse and will lead to London conceding a global leadership role unless reversed.
 
“The LSDC believes there is an opportunity to invest taxpayers’ money effectively to increase the scale and quality of green finance in London, and in doing so leverage much larger private capital flows – but only if London is given the devolved financial capacity to do so. We also believe that this can be done in a manner that brings real social as well as environmental benefits. There must be a redoubling of London’s efforts to avoid the societal collapse facing humanity unless the twin threats of global heating beyond 1.5°C and human-driven ecosystem collapse are averted.”

Khan added: “I welcome this report setting out a roadmap to boost green investment for our city. I’ve been clear from the start that, for London to play its role in tackling the climate emergency, we need large-scale investment far beyond City Hall provision. This means the government, banks, pension funds and others must play a role. Finding new means of finance is a key barrier to overcome to achieve a zero-carbon future, and I will be looking at the commission’s recommendations closely to see how they can be taken forward.”