Green Finance Task Force

The UK Government published the Report of its Green Finance Task Force on 28 March.  You can find it here.  The report makes a number of key recommendations.  It is a good start although (much) more will need to be done.  HMT/BEIS had every opportunity to input to the report, so lets hope they are signed up to the proposals and will deliver.  Money will be required, although the report also suggests how that can be raised.  I was particularly keen to support the various recommendations for the retail sector to be followed through.  And for ESG issues to be routinely incorporated in investment decisions, which is also a theme of the EC HLEG report.  Finally, the Green Fintech and Climate Analytics pieces will be key to underpinning the necessary changes in the financial sector.

EC Action Plan on Sustainable Finance

This has now been published and you can find it here.

One of the biggest risks to the financial sector from climate change is policy risk.  As part of the transition to a low carbon economy, governments have promised to take action.  Action which has the potential to quickly change asset prices – up and down.  Until now we have not had a clear idea of what governments would actually do, so the risk was known but very unclear.  Until now.  The EC’s action plan in response to the HLEG report is by far the most comprehensive set of policy measures yet to attempt to deliver sustainable finance – not just to finance the climate transition, but also other aspects of the UN’s sustainable development goals.  This could be the first implementation of something truly important for the world’s future … or a missed opportunity.  Over to the EU/EC to deliver on its own plan and the UK Government to emulate.  (Global warming does not recognise national boundaries.)