The UK: a global hub for green finance Green financial expertise in the UK extends from London to Edinburgh, encompassing the full breadth of the UK’s financial and professional services sector and demonstrating clear support for the country’s estimated £122 billion low-carbon economy.
global business community. We’re keen to share our expertise, because if green finance is to be successful it must go global. We intend to work collaboratively with financial centres worldwide to maximise the sector’s development.
The UK’s reputation for innovation, access to a global investor base, world-class clusters of expertise and thought leadership mean it is a leading centre for the provision of green services internationally. The UK is fast becoming the venue of choice for landmark renminbi- and rupee-denominated green bond issuances and for supporting low-carbon project financing worldwide.
By raising capital for green projects, investing savings in low-carbon infrastructure and facilitating implementation of COP21’s Paris Agreement the global financial sector can drive the transition toward a carbonneutral economy. In recent years the industry has perhaps been too cautious to admit it, but global capital markets have the capacity to enact fundamental economic change – and that is precisely what the green finance sector might do.
London and the UK’s green expertise is an asset for the
The City of London Corporation – the body responsible for running London’s Square Mile – regards green finance as prudent, profitable and one of the best tools available in the race to cut carbon. That’s why, in January 2016, we launched our Green Finance Initiative in partnership with government and industry. The initiative brings together international expertise from across the financial and professional services sector.
To find out more visit greenfinanceinitiative.org or email us at green@cityoflondon.gov.uk
o Providing public and market leadership on green finance o Advocating for specific regulatory and policy proposals that might enhance the green finance sector worldwide o Promoting London and the UK as a leading global centre for the provision of green financial and professional services
greenfinanceinitiative.org
greenfinanceinitiative.org
39 green bonds are now listed on the London Stock Exchange raising in excess of $9.3 billion in seven different currencies.
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Green finance is key to meeting the huge financial demands created by climate targets, estimated at $1.6 trillion per year by the International Energy Agency. Public-private sector collaboration will be crucial to developing deep, liquid and resilient green capital markets worldwide.
The UK leads on world-first innovations, from issuance of the first renminbi and rupeedenominated green bonds to innovative renewable investment trusts, carbon disclosure requirements, green lending facilities and carbon trading platforms.
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Total capital mobilised by the UK’s Green Investment Bank has reached £10.9bn, supporting 81 green infrastructure projects. GIB has begun making international minority equity investments with an initial £200million pilot targeting East Africa, South Africa and India.
Global green bond issuance hit a record $42 bn in 2015 k
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More than 121 UK energy projects have been successfully crowdfunded, providing an average project return of 7.36%. 40 35 30 25 20 15 10 5 2007
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September 2016 – world leaders make a historic commitment to “scale-up” the green finance sector. The G20’s Green Finance Study Group, co-chaired by the UK and China, challenges authorities to engage in cross-border collaboration, enhance metrics and knowledge sharing, and deliver clear policy signals and economic frameworks for green finance.