Evening Standard Comment: London can lead the green finance revolution
“The world’s first net zero-aligned financial centre.” That is what Rishi Sunak wants the UK, and by extension London, to be. It is a bold ambition but one the capital, as a global financial hub, is more than capable of meeting.
On finance day at COP26 in Glasgow, the Chancellor is convening what the Treasury calls the largest ever meeting of finance ministers on climate change.
Under new proposals, UK financial institutions and listed companies will be required to publish net-zero transition plans that demonstrate how they will adapt and decarbonise their businesses.
As a result of climate commitments, more than $130 trillion, or two-fifths of the world’s financial assets, are set to be aligned with the climate goals of the Paris Agreement — most notably the aim to keep global warming to 1.5 degrees above pre-industrial levels by 2100.
Mayor Sadiq Khan has also committed a further £30 million in the capital to crowd in up to £150 million of private investment in low carbon projects in order to hit our 2030 net-zero target.
These pledges are hugely welcome but it is critical they translate into cold, hard cash. The delay to the $100 billion in funding from rich to poor nations to help them transition to net zero is evidence that reality does not always match the headline.
Indeed, the continued funding of fossil fuel extraction raises questions about how aligned some financial institutions really are to net zero.
Yet activating the private sector and leveraging London’s financial might is mission-critical for raising the funds and green-lighting the projects necessary to transform the world economy. Let’s now get to work.
