UK To Outline Plans To Become World’s First Net-Zero-Aligned Financial Centre
UK Chancellor of the Exchequer Rishi Sunak is set to outline progressive plans for the country to become the world's first net-zero-aligned financial centre, meaning financial institutions in the UK will have robust firm-level plans on how they will decarbonise in the coming years.
Sunak is set to announce the launch of an “innovative” new financing mechanism, to be known as the Climate Investment Funds’ Capital Markets Mechanism (CCMM). It will help boost clean energy investment, such as wind and solar power in developing nations.
Green bonds worth billions will be issued in the City of London by the CCMM with the help of reflows. It is estimated that the fund could leverage an additional $30 - $70 billion from other sources for clean energy projects.
As COP26 continues, the UK will bring in climate commitments from private companies covering $130 trillion of financial assets on Finance Day. These are worth approximately 40% of the globe’s total financial assets and will create a significant sum of cash that will help fund the country’s net-zero transition.
Over 450 financial firms across 45 countries have made pledges which have been delivered through the Glasgow Financial Alliance for Net Zero (GFANZ), which was launched by the UK government.
Assembling the largest-ever meeting of finance leaders on the climate crisis, the Chancellor of the Exchequer will set out the UK’s “responsibility to lead the way” and will reveal a new push to decarbonise the country’s world-leading financial centre.
