Green Finance Strategy published today
BEIS have this morning issued a strategy document showing how a comprehensive approach to the greening of the financial systems will create new financial markets and ensure that the UK captures the massive opportunities that this presents.
The strategy recognises the essential role that finance plays in delivering not only domestic but also global climate change and environmental goals. The Green Finance Strategy comes on the back of the Clean Growth Strategy, the 25 year Environment Plan and the Industrial Strategy all published in the last few years.
The new strategy covers the following:
Chapter 1: Greening Finance
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.
Chapter 2: Financing Green
Accelerating finance to support the delivery of the UK’s carbon targets and clean growth, resilience and environmental ambitions, as well as international objectives.
Chapter 3: Capturing the Opportunity
Ensuring UK financial services capture the domestic and international commercial opportunities arising from the ‘greening of finance’, such as climate related data and analytics, and from ‘financing green’, such as new green financial products and services.
Elmhurst’s Technical and Operations Director, Stuart Fairlie states: “We welcome the strategy document as it rightfully highlights the opportunities that green finance presents; these opportunities need to be maximised for the benefit of homes and businesses throughout the UK.
The strategy is supported by statements and documents released by government, these include the ‘Future Homes Standard’ which was announced by Phillip Hammond within the Spring Statement, and the introduction of the 'The Grand Challenges' policy document which aims to half the energy use of new buildings by 2030 (not to mention the most recent net zero carbon commitment).
For those that remember, Elmhurst was a trail blazer in this area with all Chartered Surveyors able to produce Home Energy Reports in the 1990/2000s, with building surveys enabling lenders to make green mortgages offerings. The idea that a link can be established with an energy assessment of a building is not new, and now it needs to be maximised. We are living in interesting times and maximising the use of energy assessments and the connecting home/building owners and landlords to green finance is a ‘win-win’ situation.”
Green Finance Strategy:
UK commits to net zero emissions by 2050: https://www.elmhurstenergy.co.uk/uk-commits-to-net-zero-emissions-by-2050
Enable Empower, Ensure: A new finance for the new Economy https://www.elmhurstenergy.co.uk/enable-empower-ensure-a-new-finance-for-the-new-economy
End Fossil Fuels for heating homes from 2025: https://www.elmhurstenergy.co.uk/end-of-fossil-fuels-for-heating-homes-from-2025
Clean Growth Strategy: https://www.gov.uk/government/publications/clean-growth-strategy
25 Year Environment Plan: https://www.gov.uk/government/publications/25-year-environment-plan
Industrial Strategy: https://www.gov.uk/government/topical-events/the-uks-industrial-strategy