UK Government Publishes Green Finance Strategy07/02/2019The U.K. Government has published a Green Finance Strategy for transforming finance for a greener future. The Green Finance Strategy has two objectives: to align private sector financial flows with clean, environmentally sustainable and resilient growth, supported by Government action and to strengthen the competitiveness of the U.K. financial sector. The Strategy document states that these objectives will be met by:
- Greening finance: ensuring current and future financial risks and opportunities from climate and environmental factors are integrated into mainstream financial decision-making, and that markets for green financial products are robust in nature. Some of the action committed to by the Government includes: (i) announcing an expectation for all listed companies and large asset owners to disclose by 2022 (as per the recommendations of the Financial Stability Board's Taskforce on Climate-related Financial Disclosures); (ii) establishing a joint taskforce with U.K. regulators, chaired by Government, to examine the most effective way to approach disclosure and exploring the appropriateness of mandatory reporting; (iii) clarifying responsibilities for the Prudential Regulation Authority, the Financial Conduct Authority and the Financial Policy Committee to have regard to the Paris Agreement when carrying out their duties. The Government states that it will publish an interim report by the end of 2020, which will include an assessment of these steps.
- Financing green: accelerating finance to support the delivery of the U.K.'s carbon targets and clean growth, resilience and environmental ambitions, as well as international objectives. Among other things, the Government will place the 25 Year Environment Plan into statute through the forthcoming Environment Bill.
- Capturing the opportunity: ensuring U.K. financial services seize the domestic and international commercial opportunities arising from the 'greening of finance'. The Government is launching the new Green Finance Institute, to strengthen collaboration between the public and private sectors and will also be promoting the adoption and mainstreaming of green finance products and services.
The Government states that it will review progress against the aims and objectives of its strategy in 2022.
View the Green Finance Strategy.
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