The Government has published its promised updated Green Finance Strategy, updating the previous 2019 strategy. It aims to reinforce and expand the UK’s position as a world leader on green finance and investment, based on 5 key objectives:
- UK financial services growth and competitiveness;
- investment in the green economy;
- financial stability;
- incorporation of nature and adaptation; and
- alignment of global financial flows with climate and nature objectives.
The Government understands it needs to provide transparency, support the development of market tools and support transmission channels to allow the financial sector to align with net zero. Among commitments it is now making are:
- to consult on requiring large companies to disclose transition plans;
- to call for evidence on GHG emissions reporting;
- to work to improve the approach to climate resilience assessment and disclosure;
- to deliver a UK Green Taxonomy;
- to consider regulating ESG ratings providers;
- to relaunch the Green Finance Education Charter; and
- to look at how financial markets can support businesses to grow as part of a net zero economy, including on liquidity, investor stewardship and the clarification of fiduciary duty;
- international collaboration on key initiatives.
The paper also explains the roles of the UK Infrastructure Bank, British Business Bank, UK Research and Innovation and UK Export Finance as well as how the Government will work with the Green Finance Institute.