UK sets up specialised green finance centre in London, Leeds
The UK Centre for Greening Finance and Investment will begin in April 2021, in partnership with a number of UK institutions such as University of Oxford, the University of Leeds and Imperial College London. The government has allocated £10m in this centre, which will unlock new opportunities for the UK to lead internationally in greening global finance, diverting investments away from unsustainable activities such as deforestation and fossil fuels towards low carbon sectors. It will aim to protect the UK economy and society from climate and environmental risks such as extreme weather events, flooding, major biodiversity loss and water crises.
The research hubs in Leeds and London will provide data and analytics to financial institutions and services such as banks, lenders, investors and insurers around the world to better support investments and business decisions by considering the impact on the environment and climate change. For example, the new centre will equip banks with the latest environmental and scientific intelligence to help companies of all sizes, including start-ups, anticipate, adapt and gear up for the risks posed by climate change. It will help create new products and services to tackle climate change, such as technology to measure severe storms and flood risks for property investors, for instance.
This new centre will advance the UK’s leadership in green finance and bring forward the day when firms can access environmental data and analytics for every place on Earth, past, present and future, said Economic Secretary to the Treasury and City Minister John Glen. “We’ve set the ambition for net zero – now we must ensure our financial sector has the tools and information to get behind the transition. We’re already improving the climate data available by mandating TCFD-aligned disclosures across the economy and implementing a green taxonomy,” added Glen.
The centre will also encourage private investment in green projects to drive growth across the economy. The green finance hubs will also attract and develop new green finance talent globally to the UK’s major cities.