1、Green Finance Strategy Transforming Finance for a Greener Future July 2019 Crown copyright 2019 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/ version/3 o

2、r write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psinationalarchives.gsi.gov.uk. Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publicati

3、on should be sent to us at: enquiriesbeis.gov.uk Contents Ministerial Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4、 . . . . . . . . . . . . . . . .5 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Chapter 1: Greening Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5、. . . . 17 Chapter 2: Financing Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Chapter 3: Capturing the Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Next Steps . . . . . . . . . . . . . .

6、. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Annex A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Annex B . . . . . . . . . . . . . . . . . . . . .

7、 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 1 Ministerial Foreword Rt Hon Greg Clark MP Secretary of State for Business, Energy and Industrial Strategy Rt Hon Philip Hammond MP Chancellor of the Exchequer The UK has a proud record in tackling cli

8、mate change and protecting the environment. Transforming our financial system for a greener future is important for us to continue to lead the way. We were the first country in the world to set long- term, legally binding emissions reduction targets, through the Climate Change Act 2008. We have led

9、the G20 in decarbonising our economy. And, through our 25 Year Environment Plan, we are delivering our commitment to leave the environment in betterconditionthan we found it. But tackling climate change and environmental degradation is only just beginning. By legislating for net zero emissions by 20

10、50, we are responding to the latest science by raising our ambition. Meeting our objectives will require unprecedented levels of investment in green and low carbon technologies, services and infrastructure. Green finance will be central to providing the flows of capital we need. The challenges in cr

11、eating a sustainable and resilient economy are great but the opportunities are greater still. With a leading financial services sector, the UK is ideally placed to seize the commercial potential arising from this transition, which is why green finance is at the heart of the Governments approach, and

12、 a pillar of both our Clean Growth Strategy and Industrial Strategy. It will also help ensure our financial system is robust and agile enough to respond to the profound challenges that climate change and the transition to a clean and resilient economy bring with them. Building on the important work

13、of the Green Finance Taskforce, this first Green Finance Strategy sets out how we will achieve this ambition and accelerate the growth of green finance, from greening the global financial system and catalysing the investment we need, to driving innovation in financial products and building skills ac

14、ross the financial sector. This Strategy is also a call for collective action, setting out how we will work with industry, regulators, academia and the newly launched Green Finance Institute to deliver the urgent and far reaching change that is needed for a greener, more sustainable and prosperous f

15、uture. There is no doubt about the scale of the environmental challenge that we face. To tackle that challenge effectively and sustainably requires us to harness the delivery capacity of the market economy and in particular to mobilise the enormous resources of our capital markets through Green Fina

16、nce. This Strategy represents our commitment to taking the steps that will ensure that the UKs Green Finance sector is turbo-charged to play a crucial role in protecting the future of our planet for generations to come. Rt Hon Greg Clark MP Rt Hon Philip Hammond MP Green Finance Strategy 23 GREENING

17、 FINANCE Mainstreaming climate and environmental factors as a financial and strategic imperative Establishing a shared understanding Clarifying roles and responsibilities Fostering transparency and embedding a long-term approach Building robust and consistent green financial market frameworks The UK

18、s Green Finance Strategy Aligning private sector financial flows with clean, environmentally sustainable and resilient growth. Strengthening the competitiveness of the UK financial services sector. FINANCING GREEN Mobilising private finance for clean and resilient growth Establishing robust, long-te

19、rm policy frameworks Improving access to finance for green investment Addressing market barriers and building capability Developing innovative approaches and new ways of working CAPTURING THE OPPORTUNITY Cementing UK leadership in green finance Consolidating the UKs position as a global hub for gree

20、n finance Positioning the UK at the forefront of green financial innovation and data and analytics Building skills and capabilities on green finance Green Finance Strategy 45 Executive summary Climate change and the degradation of the worlds natural capital assets are defining issues of our time. Th

21、e world is getting warmer, sea levels are rising, pollution is costing lives and biodiversity is collapsing. The recent Intergovernmental Science and Policy Platform on Biodiversity and Ecosystems Services (IPBES) Global Assessment and the Intergovernmental Panel on Climate Change (IPCC) Special Rep

22、ort on 1.5C are both timely reminders of the urgency of action. The UKs new target to reach net zero greenhouse gas emissions by 2050 means we are the first major economy in the world to set such a target into law. We are also introducing a landmark Environment Bill, which will place environmental a

23、mbition and accountability at the very heart of government and put our flagship 25 Year Environment Plan into law. We need to shift to a world where we are at net zero emissions, and deliver our commitment that this will be the first generation in our history to leave the environment in a better con

24、dition than we found it. This means systemic changes across all parts of our economy; and in particular delivering a global financial system that supports and enables these outcomes. This strategy is our first step towards delivering that vision. The global shift towards cleaner, resilient growth As

25、 the international community begins to take the action that this challenge demands, a significant transformation is beginning in the global economy towards cleaner, more resilient economic growth. We expect that countries will increase their commitments and accelerate this transition at COP26 in 202

26、0, which the UK has bid to host in partnership with Italy1. The re-allocation of tens of trillions of dollars of capital towards green investment offers the potential to reshape cities, energy systems and land use around the world. The nature of this investment over the coming decades will determine

27、 the future of our climate, the natural world and the resilience of our communities. It also presents a substantial commercial opportunity for the UK financial sector. As recently noted by the International Energy Agency, the UK has led the way in the transition to a low carbon economy2. Since 1990,

28、 we have grown our economy by two-thirds while reducing our carbon emissions by over 40%, the strongest performance of any G7 country. There are already almost 400,000 jobs in low carbon businesses and UK vs G7 GDP and Emissions 20 40 60 80 100 120 140 160 180 0200520102015 Index (1990=10

29、0) Source: World Bank, UNFCCC, ONS, BEIS Greenhouse Gas Inventory. UK GDP + 72% G7 GDP + 65% G7 emissions - 5% (1990 - 2016) UK emissions - 42% Green Finance Strategy 67 their supply chains across the country3 and clean growth sits at the heart of the UKs Industrial Strategy as one of four Grand Cha

30、llenges. The Government has a proud pedigree of climate and environmental leadership, such as the UK Climate Change Act, Clean Growth Strategy, 25 Year Environment Plan and the National Adaptation Programme and now this Green Finance Strategy. As we move towards a net zero economy, finance will play

31、 a crucial role in enabling changes to our homes, how we travel and our agriculture. The UK has the opportunity to lead the way in clean, climate resilient growth that protects our natural environment. Transforming the Financial System As the financial risks and opportunities from the low carbon tra

32、nsition become apparent, a second, equally important, transformation is also underway: that of the financial system. This transformation moves beyond just funding green projects to ensuring climate and environmental factors are fully integrated into mainstream financial decision making across all se

33、ctors and asset classes. And here too, the UK has led the way. The Green Finance Taskforce report, published in March 2018, was a landmark in the development of UK green finance. The Bank of England has played a pivotal role, both domestically and internationally, to ensure climate change is conside

34、red a mainstream and far-reaching financial risk, as well as one that requires action today. UK firms have also played a leading role at home and abroad, with banks, insurers, asset managers and pension funds in the vanguard of green financial innovation, supported by a rich ecosystem of civil socie

35、ty, business, academia and technical experts. Cementing UK leadership With our track record on clean growth and a world-leading financial sector, the UK is well- placed to seize the economic benefits of green finance. As the Industrial Strategy demonstrates, this is a win-win for our climate and env

36、ironmental ambitions, as well as further enhancing the competitiveness of the UKs real economy and financial services sector. Leadership on green finance will enable the UK to maximise the economic opportunities of the global and domestic shifts to clean and resilient growth. Progress is undoubtedly

37、 being made. 70% of banks in the UK now consider climate change as a financial risk4, and green financial products are increasingly becoming more widespread in the market. But much more needs to be done. Only 10% of banks in the UK are taking a long-term strategic approach to managing the financial

38、risks from climate change5, and the total global and domestic value of outstanding green bonds is only a fraction of the financing required. And more needs to be done to ensure the physical and transition risks from climate change are fully taken into account so as not to undermine the future resili

39、ence of individual investments and the wider economy. Delivering an ambitious and credible Green Finance Strategy Our Green Finance Strategy supports the UKs economic policy for strong, sustainable and balanced growth, the delivery of our modern Industrial Strategy and our domestic and international

40、 commitments on climate change, the environment and sustainable development. It is informed by the private sector and wider stakeholders, and is, in part, a response to the recommendations of the Green Finance Taskforce, chaired by Sir Roger Gifford. The Taskforce is a leading example of the cross-s

41、ector collaboration that the strategy seeks to advance. To this end the Government has already taken action to implement its recommendations ahead of the publication of this strategy, such as announcing the establishment of the Green Finance Institute (GFI). As the UKs principal forum for collaborat

42、ion between the public and private sector with respect to green finance, the GFI will play an integral role in supporting delivery of our Green Finance Strategy and driving the mainstreaming of green finance in the UK and abroad. This Strategy is an ambitious package, bringing together work from acr

43、oss the Government, regulators and the private sector. We will be co- ordinating closely with our international partners to achieve our objectives. Greening Finance The transition to a green financial system means fundamental changes to the way decisions are made across the economy. To achieve the g

44、oals of the Paris Agreement and our wider environmental ambitions, all finance will need to incorporate the financial risks and opportunities presented by climate change and other environmental challenges. There is increasing international recognition of the need to integrate climate and environment

45、al factors into mainstream financial decision-making. One of the most influential initiatives to emerge is the Financial Stability Boards private sector Task Force on Climate-related Financial Disclosures (TCFD), supported by Mark Carney and chaired by Michael Bloomberg. This has been endorsed by in

46、stitutions representing $118 trillion of assets globally6. An increasingly large proportion of the private sector is now beginning to implement the TCFD recommendations and in September 2017, the UK became one of the first countries to formally endorse them. Strategy and Objectives Our Strategy has

47、two objectives, and three strategic pillars to achieve them: To align private sector financial flows with clean, environmentally sustainable and resilient growth, supported by Government action. To strengthen the competitiveness of the UK financial sector. OBJECTIVES STRATEGY Chapter 1 Greening Fina

48、nce Ensuring current and future financial risks and opportunities from climate and environmental factors are integrated into mainstream financial decision making, and that markets for green financial products are robust in nature. Chapter 2 Financing Green Accelerating finance to support the deliver

49、y of the UKs carbon targets and clean growth, resilience and environmental ambitions, as well as international objectives. Chapter 3 Capturing the Opportunity Ensuring UK financial services capture the domestic and international commercial opportunities arising from the greening of finance, such as climate related data and analytics, and from financing green, such as new green financial products and services. . Green Finance Strategy 89 Alongside the private sector, central banks and supervisors are also taking action to address the far-reac