UK urged to ‘green’ finance system ahead of G7 and COP26
Ahead of COP26 and the G7, which will both be hosted by the UK, finance experts have urged the government to push for reforms to the global financial system and help deliver a more sustainable economy.
A new report by Oxford University’s sustainable finance programme director Ben Caldecott and Policy Exchange think tank senior advisor Benedict McAleenan sets out several recommendations for ministers as they prepare to lead the key diplomatic summits over the coming months.
In a foreword to the report, Anthony Browne MP, a former chief executive of the British Bankers Association and former economic advisor to the Prime Minister, said, “From mortgages attached to housing on flood plains, to commodities futures exposed to ecological volatility, to pensions invested in fossil fuel companies, environment-related risks stretch into almost every part of the system.
“All of this must be addressed, and I applaud the authors of this report for offering credible options to do so.”
Recommendations set out in the report include the introduction of a compulsory nature-related financial disclosure regime, the development of a taskforce on nature-related financial disclosures, and a requirement for financial firms to develop Paris Agreement-aligned carbon reduction plans.