Green Finance will play a vital role in ensuring the UK meets its commitment to net-zero greenhouse gas emissions by 2050, according to the CBI.
Ahead of the Government’s Green Finance Strategy, Britain’s largest business group underlined the importance of accelerating Green Finance in the UK and ensuring that all firms have access to it, alongside other forms of finance.
Green Finance refers to all forms of investment or lending that focus on reducing carbon emissions or mitigating the effects of climate change, and will be key to supporting economic growth as nations tackle the issue.
Key recommendations to the Government in the CBI’s paper on Green Finance include:
- Bringing the Government, regulators, financial services firms and the wider industry together to jointly develop regulations that promote Green Finance
- Sector-specific roadmaps to enable specific industries – such as, the built environment, transport and energy-intensive industries – to achieve the net-zero target
- A fund from the British Business Bank to promote Green Finance for small and medium-sized businesses (SMEs)
- Incentives to encourage industry to move towards Green Finance.
Rain Newton-Smith, CBI Chief Economist, said:
“Business is right behind the need for the UK to have a net-zero economy by 2050 and build on our global leadership in cutting greenhouse gas emissions.
“Green Finance is an excellent tool to help decarbonise the economy and could be another string to our bow as one of the world’s great financial powerhouses.
“The Government’s Green Strategy is a golden opportunity for the UK to build on its existing strengths in Green Finance, and ensure that firms of all sizes are encouraged to access it, alongside other forms of finance.”