The UK Treasury has backed a plan that could see the development of sustainable investment funds to help London become the ‘green’ finance capital of the world.
As well as funds in ISA format, ideas to stimulate London as a green finance hub also include freely available benchmarks that rank corporate greenness, and enhancing green financial education via professional qualifications.
The report by PwC for the City of London Corporation describes the UK as leading the world in green finance because of the City’s mix of expertise and innovation.
Called ‘Globalising Green Finance: the UK as an international hub’, it makes recommendations for the UK government and businesses to help grow the sector. These include setting a clear path for stimulating green finance and having an independent body steer the project.
Regulators should also prioritise climate-related financial risks and include green forward guidance in regulatory policy.
Simon Kirby, the Economic Secretary to the Treasury, said:
“There is a real opportunity to deliver a greener economy through financial markets and we will make sure the UK remains at the forefront of that effort.”
In addition to the launch of the report, it was also announced today that China’s Green Finance Committee and the City of London’s Green Finance Initiative will convene a working party in 2017 to tackle issues such as cross-border green financial flows.
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