The UK should focus on becoming a global hub for innovation in green finance – so states a discussion paper from the City of London’s Green Finance Initiative.
Recommendations contained in Fifteen Steps to Green Finance include setting up a green finance fintech catapult, creating a Green Standards Board to build trust in new green finance products, and directing grants or tax exemptions to firms issuing and listing verified green bonds.
Published in association with the climate change think tank E3G, the paper also includes a mix of policy reforms, improvements to domestic infrastructure, and highlights the need to boost global trade.
Policy chairman at the City of London Corporation, Catherine McGuinness, said that the growing strain being levied on the environment was a driving force behind the green finance crusade.
“The world is getting warmer, sea levels are rising and extreme weather conditions are increasingly unpredictable, causing devastating effects,” she explained.
“The onus is on us to put right our negative impacts on the environment, and this paper clearly outlines how financial firms can really make a difference.
“As Brexit looms and the UK looks to establish a name for itself outside the European Union, we have an opportunity to show our truly global reach and become a leading figure in renewable investment, which is set to grow exponentially in the coming years.”
Green finance has seen major financial hubs around the world vying to become leaders in the sector, which is estimated to be worth up to $90trillion globally.
Cover image by Daniel Chapman (Creative Commons)