Accelerating Green Finance
How we manage the world’s natural environment is one of the most pressing issues of our time, associated with climate stress, pollution and a prodigious need for clean energy. Until recently, however, this has tended to be seen in terms of cost rather than investment and return, of risk management rather than forward-looking risk mitigation.
In particular, the global challenge of raising the trillions needed to meet the two degrees or less scenario agreed in Paris 2015, are as great as the consequences appear grave if we don’t. The sheer scale of capital required dictates that this cannot be driven through either public or private sectors working alone – we need an international alignment of interests, incentives and policies. That is why we set up the London Green Finance Initiative in 2016, to bring these groups together and see where the UK’s great financial acumen could make its contribution.
The financial system is one of the jewels in the crown of the UK economy, and has a vital role to play in the transition to a low carbon economy. The challenges of the transition to a low carbon economy are great, but the opportunities are greater.