Government launches plan to accelerate growth of green finance

New measures to accelerate investment in clean growth by building on the UK’s strength in green finance will be set out at the opening ceremony of Climate Week soon.

Green finance includes private sector investments in technologies, infrastructure and innovative start-ups that can create jobs and allow businesses to expand, boosting economic growth while reducing greenhouse gas emissions.

Between 1990 and 2016, UK GDP has grown by 67 per cent while carbon emissions have fallen by 42 per cent, showing it is possible to reduce emissions and grow the economy.

Although the green finance agenda has gained global momentum, the government says the market must accelerate to meet climate change commitments.

An estimated $13.5 trillion of investment is needed between 2015 and 2030 in the energy sector alone for countries to meet their Paris Agreement targets.

Enabling the sector to develop further will not only assist the transition to a low carbon economy but also ensure London remains the world’s leading global financial centre.

The Green Finance Taskforce, chaired by former Lord Mayor of London Roger Gifford, will be given six months to deliver proposals to accelerate investment in the transition to a low carbon economy, creating high-value jobs and opportunities for UK businesses. It will examine a range of interventions, from making infrastructure investment more sustainable to scaling-up green mortgages.

Government will work with the City of London’s Green Finance Initiative and the British Standards Institute to develop a set of voluntary green standards to promote responsible investment practices.

Financial experts working on the Green Finance Taskforce include leading figures from Aviva, Barclays, HSBC, Legal & General and the Bank of England, as well as academics and sustainability experts.

Stephen Barclay, Economic Secretary to the Treasury, said: “Financial services are a British success story and the sector has the power to drive green and sustainable development.

“It is a priority of mine that people are able to access financial products that support their values, whether that be sharia-compliant loans or green mortgages that have a positive environmental impact. This taskforce will keep the UK at the forefront of green finance and help deliver choice for consumers.”