TheCityUK reports on UK position in global climate financing markets

The City of London Corporation and the UK Carbon Markets Forum have published a report that highlights the strengths of the UK as a global leader in climate finance. The key factors that position the UK as a global leader in scaling the market are:

• geological and natural capital advantages to put in place cost-effective, high-integrity carbon removal solutions which can help to position the UK as a major source of carbon credits for domestic buyers and of exports globally;
• its depth of experience in sustainable finance and commodity innovation, from both private sector and government; and
• its comprehensive carbon market ecosystem.

But at the moment, the level of demand in the markets is low and the report calls for clarity and guidance on when carbon credits can be used as part of net zero targets, disclosures and green claims. There also needs to be more support for building capacity in the UK – which the report suggests can be achieved by enabling climate start-ups to access capital in the UK as well as investing in skills. It sees blended finance opportunities and public-private partnerships as a way of supporting de-risking projects, skill development and scaling impact.