COP26: UK announces plans to create first ever 'net-zero' financial center

British Finance Minister Rishi Sunak at COP26 climate summit unveils plans to create the world’s first net-zero financial center by 2050. 

Sunak lays out the UK's "responsibility to lead the way" and launch a campaign to decarbonize our world-leading financial hub at the largest ever summit of finance executives on climate change. 

UK financial institutions and listed corporations would be required to produce net-zero transition plans that describe how they will adapt and decarbonize as Britain progresses towards a net-zero economy.

Sunak will also welcome commitments from over 450 global financial institutions with over $130 trillion in assets to comply with the 2015 Paris Agreement's climate targets.

Also read : COP26: 20 countries pledge to end financing for fossil fuel projects abroad

Meanwhile, to avoid so-called greenwashing, he will also propose the formation of a new transition plan task force to produce a "gold standard" for such decarbonization programs.

The administration will publish more specific programs and intermediate transition objectives next year.

These commitments come from all sectors of the financial industry, based in 45 countries across six continents, and were made through the Glasgow Financial Alliance for Net Zero (GFANZ), which was established by the UK to harness the power of the financial sector in the transition to net-zero.

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Sunak will also emphasize that the $100 billion climate finance target will be met by 2023, and he will urge developed countries to increase their support for developing countries, including by assisting them in accessing the trillions of dollars committed by the private sector to net-zero emissions.

Also Read COP26: 28 nations pledge to quit coal, U.S., China, India skip out alliance

Moreover, the UK will seek to address financial barriers faced by developing countries through a series of new green initiatives funded by its international climate finance (ICF) so that it will become easier for developing countries to access finance for their climate plans.

Source: Gov.Uk

Picture Credits: The Scotsman