A new report has advised the government to set out “clear and consistent policies and regulations” on decarbonising the broader economy as the most effective way to unlock and stimulate UK leadership in green finance.
The report from TheCityUK and PwC found that around 70% of the £110 trillion investment needed globally to reach net zero will need to be found in private financial markets.
Jon Williams, a partner at PwC Global Banking & Capital Markets ESG leader and PwC UK Sustainability Chair, said:
“There is a strong appetite in the UK to accelerate the reduction in carbon emissions as we move towards net zero, but we are not moving quickly enough.
“The required effort must come from everyone – from policymakers to business leaders and consumers themselves.”
The report, Enabling the net zero transition: the role of financial and related professional services, looks at the risk factors across each sector that are stopping more significant investment and capital from allocation to greener investment.
There is a 10-point plan in the report designed to help government, regulators and broader industry take advantage of the opportunities that come from expanding UK-based green finance.
Risk factors include technology, business models and policy. The report also explains how to address or reduce these risks to unlock the necessary investment in greener finance.
Miles Celic, chief executive officer at TheCityUK, said:
“Delivering the transition to net zero will take more than good intentions. It will require the government, regulators, and industry to work in close partnership.
“We all have our own role to play, and action by one cannot compensate for inaction by another. Financial regulations cannot substitute for government climate policies, and consumer spending choices cannot substitute for public and private investment.
“We are calling on the government to take forward a 10 point action plan to help unlock the vital investment needed to reach our net zero ambitions. We also need a clear and sustained cross-party commitment to net zero, with well-signalled policies to drive forward proactive decarbonisation across the whole economy.”
The 10-point action plan calls on the UK government to: