Today the Economic Secretary to the Treasury, my hon. Friend the Member for Salisbury (John Glen), and I are publishing the UK Government’s first Green Finance Strategy. The UK has a proud record in tackling climate change and protecting the environment 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 the G20 in decarbonising our economy. Through our 25-year environment plan, we are delivering our commitment to leave the environment in better condition than we found it. And only last week we became the first major economy in the world to legislate for a net zero greenhouse gas emissions target for 2050.
Transforming our financial system for a greener future is an important part in helping us to continue to lead the way. The financial sector has a central role to play in delivering the investment we need to meet our environmental objectives—and the strength of that sector means the UK is well placed to grasp the opportunities from leading in green finance, as part of our industrial strategy.
The strategy has the twin objectives of aligning private sector financial flows with clean, environmentally sustainable and resilient growth, supported by Government action; and strengthening the competitiveness of the UK financial sector. It is in part a response to the independent Green Finance Taskforce that reported in 2018.
The strategy outlines measures to: green the financial system by 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; accelerate finance to support the delivery of the UK’s carbon targets and clean growth, resilience and environmental ambitions, through a package of measures on energy efficiency in buildings, and through the launch of the Green Finance Institute; and ensure that UK financial services capture the domestic and international commercial opportunities arising from green finance.
I will place a copy of the Green Finance Strategy in the Libraries of both Houses.
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