The UK will update the Green Financing Strategy shutterstock

The UK will update the Green Financing Strategy

Katerina Belousova

The updated green finance strategy will take stock of what has been achieved so far and establish guarantees of financial support for energy security, climate and the environment.

The UK government has published a "Call for Evidence" to update the Green Funding Strategy.

The new strategy is due to be published in late 2022, he said GOV.UK.

The first green finance strategy, published in July 2019, had the following objectives:

  • Greening funding by supporting the financial services sector in line with the UK's net zero commitments, the need to adapt to climate change and restore nature.
  • Environmental financing by mobilizing large-scale private investment to support clean and sustainable development.
  • Support financial services to seize the opportunities that open up the transition to a clean zero and natural-positive economy, strengthen the UK's leadership in green finance and ensure that businesses can benefit.

To achieve these goals, the UK government has set up a financial center at COP26 in Glasgow, the Chancellor held a Finance Day to mobilize finance for clean zero and climate sustainable development. It has shown significant progress towards the goal of mobilizing climate finance of $ 100 billion a year for developing countries, and announced that organizations with assets of $ 130 trillion, or about 40% of the world's total, are now committed to net zero.

There are also plans to become the world's first financial center from scratch, including the transition to mandatory publication of transition plans and the establishment of a working group on the transition plan to develop a gold standard for transition planning at the firm level.

To attract private investment to support the UK's zero target and local and regional economic growth, the UK Infrastructure Bank was launched with a financial capacity of £ 22 billion.

The UK also became the first G20 country to mandate the Working Party on Climate Financial Information Disclosure (TCFD) in the economy, and set out a roadmap for broader requirements for sustainable disclosure across the economy.

The UK's green finance program also began with the issuance of two sovereign green bonds with a total transaction value of £ 16 billion, the first offering being the largest of all sovereign companies to date. Also, for the first time in the world, sovereign retail green savings bonds were launched.

The UK has supported the Working Group on Nature Financial Disclosure (TNFD) to develop a risk management system and disclose information to organizations to report on nature risks.

In addition, UK international funding for climate has doubled to £ 11.6 billion between April 2021 and March 2026, including £ 3 billion for nature protection and restoration.

To align financial flows with environmental commitments and take into account the value of nature and biodiversity, Britain has participated in negotiations on the Leaders' Commitment to Nature (LPN), which includes commitments to boost the financial system nationally and internationally. .

In addition to halting and reversing forest loss by 2030, the UK has co-led the Glasgow Leaders' Declaration on Forests and Land Use, which requires signatories to reconcile financial and economic flows with international goals.

"The updated green finance strategy will take stock of what has been achieved to date and identify how the UK can better ensure that the financial services industry supports the UK's energy security, climate and environment goals," the statement said.

These goals have been identified through several leading publications and activities of the UK government:

  • the Net Zero strategy, which sets out how the country will decarbonise its economy by 2050, supporting jobs (October 2021);
  • a new energy security strategy aimed at enhancing Britain's energy security and independence following Russia's invasion of Ukraine and rising world energy prices (April 2022);
  • the adoption of a landmark environmental law in 2021, which sets environmental goals, such as ending biodiversity loss (November 2021);
  • The National Adaptation Program, which sets out what governments, businesses and society are doing to better prepare for the effects of climate change.

We will remind, in the EU will develop professional skills to provide a green transition.

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