The government is accused of not tackling fossil fuels enough in its updated green finance strategy.
It is “missing any meaningful action on winding down financing of fossil fuels”, according to a wide-ranging group of experts and campaigners.
The strategy was recently updated for the first time since its launch in 2019, as Mobilising Green Investment: 2023 green finance strategy. In a letter to energy security secretary Grant Shapps, organised by non-profit Positive Money and signed by 34 academics, economists and financial and environmental campaigners, experts warn that progress has stalled in delivering the government’s pledge to make London the first “net-zero financial centre”.
Issues include repeated delays to the UK’s taxonomy of green activities and the absence of new net-zero public investment in the Spring budget. Action to integrate climate into the Bank of England’s monetary and financial policy operations has also stalled.
The letter acknowledges that the long-awaited update to the 2019 strategy contains positive signals, including the promise of new “net-zero investment roadmaps”, but says creating sustainable investment opportunities is no substitute for stronger regulation to curb fossil fuel financing.
Among urgent “next steps”, signatories call on the government to give regulators statutory objectives for net-zero alignment and nature protection, increase green public investment, boost the capacity of the UK Infrastructure Bank and make both climate and nature transition plans mandatory by eradicating the “comply or explain” loophole for all large companies and financial institutions.
