Why is Guernsey strongly positioned to support the transition?

3.2 Why is guernsey strongly positioned to support the just transition?

Guernsey has committed to a 2050 net zero target and an interim policy commitment to reducing emissions by 57% of 1990 levels by 2030.27 Together with the States of Guernsey, Guernsey Finance has set a clear ambition for Guernsey to play a leading role in driving the transition towards a greener, more sustainable future globally.

Via Guernsey Green Finance, Guernsey has already proven itself to be at the forefront of innovation in the green and sustainable finance sector. A number of key examples include:

TISE Sustainable – Headquartered in Guernsey, The International Stock Exchange (TISE) hosts one of Europe’s most comprehensive sustainable market segments, and is aligned to the UN’s Sustainable Stock Exchange initiative

Guernsey Green Fund – the world’s first regulated product in this space, now channelling close to £5bn into green projects

Guidance and frameworks – developing industry-first frameworks and guidance including an ESG framework for insurers and the green private equity principles

Collaboration & Engagement – e.g. Sustainable Finance Week, bringing together global leaders and experts in this field, to act as a catalytic force for innovation and collaboration. Guernsey also actively participates in a number of key international initiatives and networks, e.g. UN Financial Centres for Sustainability (FC4S) Network, UK Green Finance and Network for Greening the Financial System (NGFS)

Emerging initiatives: on anti-greenwashing and the development of a Natural Capital Fund Regime

Through a set of tight-knit industry networks, engaged and committed stakeholders, strong reputation for specialist expertise, and progressive regulatory regime, Guernsey has a number of key strengths to support its sustainability objectives. A few key points to highlight:

Guernsey has a strong track-record for innovation. Transition presents the ultimate innovation challenge and opportunity to create new structures that promote blended finance and risk-sharing across the industry, as well as new analytical tools for analysing risk. Through its industry networks, Guernsey is well placed to bring stakeholders together and develop solutions quickly

Guernsey has an engaged, supportive regulator. At the forefront of integrating climate (e.g. integrated Climate Change into Code of Corporate Governance) into regulation. This enables it to be responsive to ESG trends, whilst remaining pragmatic and proportionate for the size and scale of the industry in Guernsey

Guernsey has fast, easy access to global markets. Opportunities to connect international capital to transition opportunities across key markets globally

Guernsey is a strong, stable, trusted home for private capital. Private finance will play a key role in closing the investment gap to reach net zero. To do so, investors need confidence that their money is being managed with due care

Guernsey is a trusted home of specialist solutions. Providing specialist solutions to sophisticated clients for more than 50 years

Guernsey has a strong pool of experienced advisors. Providing support to the key finance sectors in investment advisory, impact advisory, and experienced legal and tax expertise