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The Chancellor has announced plans that will see the UK commit to becoming the world’s first net zero aligned financial centre.
Sunak welcomed “historic” climate commitments from private companies covering $130tn (£95.4tn) of financial assets as he hosted Finance Day at COP26 (3 November 2021).
These commitments will help to create a “pool of cash” that could fund the UK’s net zero transition, including the move away from coal, the shift to electric cars, and the planting of more trees.
Under the proposals, there will be new requirements for UK financial institutions and listed companies to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards a net zero economy by 2050.
These commitments come from over 450 firms from all parts of the financial industry, based in 45 countries across six continents.
The UK will also seek to address barriers to finance faced by developing countries with a series of new green initiatives funded from its international climate finance (ICF) commitment, including £100m to respond to recommendations from the UK co-chaired Taskforce on Access to Climate Finance.
In total, the UK will spend £576m on a package of initiatives to mobilise finance into emerging markets and developing economies, including £66m to expand the UK’s MOBILIST programme.
