Aldersgate Group reaction: Mansion House announcements

James Fotherby, Senior Policy Officer and green finance lead at the Aldersgate Group, said: “It was heartening to see the Chancellor use her maiden Mansion House speech to reaffirm the government’s commitment to making the UK a global leader in sustainable finance. Driving private finance into emerging green sectors is critical if the UK is to achieve its 2030 clean energy mission and broader environmental targets. There is also a significant commercial opportunity to be seized, as low-carbon financial services could generate £17 billion annually in exports by 2050 [1].

James added: “The measures announced yesterday, including the launch of a consultation on the value case of a UK Green Taxonomy, upcoming consultations on transition plans and the voluntary carbon and nature market, and draft legislation on ESG ratings, are critical steps in providing much-needed confidence to both investors and corporates. These policies will not only help address greenwashing risks but also equip the market with the consistent, comparable information needed to integrate climate and nature considerations into business and financial decisions.

It is also encouraging to see the government co-launch the Transition Finance Council with the City of London Corporation, a key recommendation in the Transition Finance Market Review. Supporting hard-to-abate and high-emitting sectors in their decarbonisation efforts is essential for meeting our climate goals and ensuring a just transition”

References
[1] Social Market Foundation, 2022, Financial services and net zero: Seizing the opportunity