The UK aims to become the first “Net-Zero” financial center in the world

The UK has released its new green finance strategy, which outlines further steps towards this target. Crucially, the strategy outlines a broad reform of policies and regulations, to achieve net zero, through the investments needed to meet climate and nature targets.

there Green financing strategy The (Strategy) Update, published March 30, 2023, is the latest policy draft to be developed by the Treasury Department, the Department of Energy Security and Net Zero and the Department of Environment, Food and Rural Affairs. The strategy sets out a blueprint for the global transition to a net zero economy that is resilient and nature positive, with “£trillions of pounds sterling” reallocated and invested in new technologies, services and infrastructure. So update the previous one Green Finance Strategy 2019. The report summarizes the “huge opportunities” in the global transformation underway of investment capital to Supporting technological solutions for climate and nature in Banks financing major renewable energy projects. A key part of the plan is a so-called green rating, a tool to provide investors with clarity about which assets are rated green. However, the government has confirmed that nuclear power will be included in the UK classification, after consultation, as it is considered a key technology within the pathways to net zero.

Objectives

The strategy aims to achieve five key objectives to ensure that the UK is a world leader in green finance and investment:

1. The growth and competitiveness of financial services – Increase support for the UK’s financial services sector to ensure it is able to thrive in a transitional global economy;
2. Investments in the green economy: raise an additional £50-60 billion in private capital investment each year to help get to net zero, build resilience to climate change and support nature restoration;
3. financial stabilityTo produce an effective green finance framework to ensure that the financial sector has access to the information it needs to be able to manage risks arising from climate change and nature loss;
4. Incorporating nature and adaptationIntegrating nature and climate into the framework of the UK Government’s green financing policy;
5. Aligning global financial flows with climate and nature goalsSupport the harmonization of global financial frameworks and stimulate investment in developing and emerging markets where capital is needed.