The Government has announced it will co-fund a new Green Finance Institute with the City of London Corporation to champion sustainable finance in the UK and abroad.
The Institute, which will be based within the City of London Corporation, was one of the key recommendations from the Green Finance Taskforce’s report published in March.
The body will drive forward the UK’s Green Finance market and play a vital role in the UK’s international engagement on financial services, especially in emerging markets where green finance demands are growing rapidly.
The Global Commission on the Economy and Climate Change estimates around $93 trillion of global infrastructure investment between 2015 and 2030 will need to be green in order to meet climate change commitments. The green bond market grew by 78% between 2016 to 2017, to $155 billion in green bond issuances.
Philip Hammond, Chancellor of the Exchequer – “We are establishing a new Green Finance Institute here in London, jointly funded by government and the City of London Corporation, so that firms from across the world can access our one-stop-shop for world-leading climate science, and for capital.”
Announcing the Institute Philip Hammond, Chancellor of the Exchequer, said: “The UK is already leading the charge in this market – with nearly 80 green bonds raising more than $24 billion across seven currencies.
“But if we are collectively to meet our global climate goals, we will need to mobilise $90 trillion by 2030. And it is my ambition that the UK leads the world in financing this investment.
“We are establishing a new Green Finance Institute here in London, jointly funded by government and the City of London Corporation, so that firms from across the world can access our one-stop-shop for world-leading climate science, and for capital.”
Catherine McGuinness, Policy Chairman of the City of London Corporation said: “I’m delighted that the Treasury is partnering with the City of London Corporation to set up a Green Finance Institute.
“This will bring together the UK’s existing capabilities, create new business opportunities, and communicate to the wider market what London’s offer is in green finance and insurance.
“Promoting this is not only good for business but is good for the world; helping tackle one of our greatest challenges – global warming.
“London is already a world leader in green finance, and this institute, a key recommendation of the Green Finance Taskforce, will ensure we remain so for years to come.”
The London Stock Exchange is currently home to 78 green bonds which have raised over $24.5 billion.