The UK’s new target to reach net zero greenhouse gas emissions by 2050 means it is the first major economy in the world to set such a target into law. The UK government is also introducing a landmark Environment Bill, which will place environmental ambition and accountability at the very heart of government and put the flagship 25 Year Environment Plan into law. The country needs to shift to a world where their people are at net zero emissions, and deliver their commitment that this will be the first generation in history to leave the environment in a better condition than people found it. This means systemic changes across all parts of the economy; and in particular delivering a global financial system that supports and enables these outcomes. This strategy is the first step towards delivering that vision.
This strategy has two objectives, and three strategic pillars to achieve them:
- To align private sector financial flows with clean, environmentally sustainable and resilient growth, supported by government action.
- To strengthen the competitiveness of the UK financial sector.
- Greening Finance. Ensuring current and future financial risks and opportunities from climate and environmental factors are integrated into mainstream financial decision making, and that markets for green financial products are robust in nature.
- Financing Green. Accelerating finance to support the delivery of the UK’s carbon targets and clean growth, resilience and environmental ambitions, as well as international objectives.
- Capturing the Opportunity. Ensuring UK financial services capture the domestic and international commercial opportunities arising from the ‘greening of finance’, such as climate related data and analytics, and from ‘financing green’, such as new green financial products and services.