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03 Nov 20211 minute read

COP26: UK to become first Net Zero financial centre

ECAtoday
COP26: UK to become first Net Zero financial centre

Opening day three of the annual COP26 climate conference in Glasgow, Chancellor Rishi Sunak has set out plans for the UK to become the world’s first “net zero aligned financial centre”.

This includes plans for government to require all UK financial institutions and listed companies to provide net zero transition plans that show how they will contribute to net zero by 2050.

The move comes weeks after major new public sector procurement rules on carbon reporting came into effect at the end of September. Procurement note PPN 06/21 applies to Central Government, Executive Agencies and Non-Departmental Public Bodies in England buying goods or services with annual contract values of £5 million or more.  

Under these new procurement rules, a bidding supplier will need to show early commitment to achieving Net Zero Carbon with a Carbon Reduction Plan (CRP), signed off at high level, and published on the supplier’s UK website.

Dr Ben Caldecott, director of the UK Centre for Greening Finance and Investment (CGFI) which has been appointed to act as the secretariat, together with think tank E3G, for the new Transition Plan Taskforce, welcomed the new commitments from the UK government.

"The world's largest international financial centre will become the world's first net zero-aligned financial centre," he said. "This is underpinned by world-leading regulation and the economy-wide adoption of net zero transition plans. This will spur demand for green finance and accelerate decarbonisation, not just in the UK but wherever UK firms do business. This will make a real difference and means the UK financial services sector will play an even larger role in providing the capital and financial services required to deliver net zero globally."

ECAtoday

ECAtoday