Energy Secretary Ed Miliband outlines plans to support banks and large companies in developing climate transition plans.
To help “unlock billions in clean energy investment”, the Energy Secretary Ed Miliband has today outlined plans to support banks and large companies in developing climate transition plans when addressing the Climate and Innovation Forum as part of London Climate Action Week (25 June).
The UK is consistently ranked first in the world for sustainable finance, and 70% of FTSE 100 companies have already voluntarily developed many of the key elements of a transition plan. Widespread transition planning will help provide long-term certainty and clarity to help scale the sustainable finance industry as part of our modern industrial policy.
The government’s clean energy superpower mission is already delivering economic growth, with net zero sectors growing 3 times faster than the overall economy last year, according to CBI Economics. Since July, over £40 billion of private investment has also been announced into the UK’s clean energy industries – creating good jobs for working people and driving long-term growth.
As part of the government’s Plan for Change, the government wants to help stimulate billions of pounds a year of private investment to deliver the government’s clean energy superpower mission and make the UK the “sustainable finance capital of the world”.
To support this growth, the government will take forward recommendations from last year’s Transition Finance Market Review to consult on transition plan requirements in order to catalyse the growing transition finance market. The design of any future transition plan requirements will be aligned with the Prime Minister’s commitment to reduce regulatory compliance costs by 25%.
The government has launched 3 consultations on:
- how to take forward the government’s commitment on transition planning to support the market to invest in sectors that will deliver the clean energy superpower mission
- new UK Sustainability Reporting Standards to provide clear, comparable information for investors on sustainability related financial risks and opportunities to enable them to make informed investment decisions
- the development of a voluntary registration regime for the providers of assurance of sustainability reporting, supporting growth in this important sector
Transition planning means businesses set out a roadmap that outlines how they intend to adapt and transform their operations, strategies, and business models to align with their climate goals.
This is a vital part of the government’s commitment to secure Britain’s position as the sustainable finance capital of the world and will help businesses and investors seize the opportunities from the clean energy transition.
A recent survey of financial institutions conducted by South Pole found that 84% of UK-based financial institutions find companies with transition plans more attractive to invest in.
Supporting British industry and creating good, skilled jobs up and up down the country is core to the government’s industrial strategy and plan to grow the economy, ensuring businesses can take advantage of the transition to new low carbon technologies as they reduce their emissions. This will allow UK industry to remain competitive globally and support the millions of manufacturing jobs in regions across the UK - as well as future-proofing existing sectors, and increasing economic resilience to climate impacts.
Extracted from UK Gov website, read more here