Today the Lord Mayor, Sir Alok Sharma and the City of London Chamber of Commerce met to discuss ‘green growth.’
The Lord Mayor reminded everyone the City has been engaged in environmental issues for a long time starting with Clean Air Acts in the 1950s. Importantly, the City has been promoting markets to invest in improving the environment. He pointed out that once people could earn a return investment in the internet took off, and the same can happen in green finance. Examples include the bonds in Latin America where interest rates increase if green targets are not met. A true market incentive to do what you promise!
Another example of how to link finance to green issues that needs more coverage is the London Accord. It first started in 2005 when an informal group of researchers, financial services organisations and investors led by Professor Michael Mainelli came together to discuss how investment research expertise could help inform policy-makers on issues such as climate change.
In 2007, the London Accord released the first "open source" research resource. Reports set out the context for investments in climate change solutions, analysed individual opportunities and discussed the implications for the construction of investment portfolios.
The project’s sponsors; The City of London Corporation, BP plc, the Z/Yen Group, Forum for the Future and Gresham College hope this 2007 publication has encouraged investors and policy makers to engage meaningfully in reducing the risk of climate change and continues to do so.
Sir Alok then shared his experience from COP26 and where the new UK Government may go on climate issues. He pointed out 50% of emissions have been cut in recent years and there is a continuation of intent to reach Net Zero by 2050. He believes the growth in onshore wind will be positive, and the aim to de carbonise the electricity grid is positive, but the Government has many challenges ahead. His question was really whether the labour Government targets can or will be achieved.
He suggests local communities must be persuaded with incentives to accept more infrastructure near them such as pylons. He also believes the UK may only be 1% of global emissions but is convinced the UK leading on climate action is important in persuading larger emitters like China and India…
This year’s COP 29 meeting starts less than a week after the US election, and so the outcome of the US election may have a big impact on that meeting.
