London Stock Exchange welcomes The Rt Hon Claire Perry MP to celebrate the Green Finance Taskforce
The Green Finance Taskforce was established by the Rt. Hon. Claire Perry MP and the Economic Secretary to the Treasury in September 2017, ahead of the UK Clean Growth Strategy. The Taskforce's objective is to advise the government on reforms to scale up green financial flows in the UK and ensure Britain remains a global leader in this market.
The recommendations from the financial industry experts that make up the taskforce are due for publication by the end of March.
Claire Perry, Minister of State for Energy and Clean Growth, said:
"The transition to a low carbon economy presents a multi-billion pound investment opportunity, which the UK is well placed to take advantage of.
"Our Industrial Strategy has clean growth at its heart, and the work of the Green Finance Taskforce will form an important step in setting the direction for future green finance policy, ensuring that the UK remains a world leader in this space."
Nikhil Rathi, who is also a member of the Green Finance Taskforce, said:
"The transition to a sustainable economy is a global challenge and the UK and the City of London have a central role to play as partners in rising to it. Going back over 300 years, the UK has been the most global marketplace, financing global economic shifts, supporting the most efficient access to capital for governments and companies around the world. We congratulate Minister Claire Perry on the Government's leadership in green finance reform".
As an active member of the UN Sustainable Stock Exchange initiative we use our position at the centre of global capital markets to support positive change. In 2015 we were the first major exchange globally to launch a dedicated green bond market. Since then, we have been home to the first Independently certified International green bonds from China, India and the Middle East, including the first ever green dim sum (Chinese renminbi) and green masala (Indian rupee) bonds. 2017 was a stellar year with green bond issuance increasing by 93 per cent and the last three months seeing more green bonds than ever before. $800m in green Masala bonds, bonds denominated in Indian rupees, was raised to develop renewable energy and make the railways greener in India.
From bonds financing clean energy and sustainable schools in Scandinavia, reforestation in Africa (with investors being repaid in carbon credits) to instruments financing mortgages from Barclays Bank for the lowest carbon UK properties, to Toyota raising €600 million to develop electric vehicles, the London market is partnering to drive global innovation.
Green bonds are just one part of the story. Equity capital raised for green and sustainable operations rose nearly 200 per cent in London last year. Renewable energy companies from Ireland to the US tapped our market to reach global investors. We have pioneered renewable energy investment funds and cleantech exchange traded funds, allowing investors to incorporate sustainability into their decisions.
As well as raising capital, we ensure global investors have the data and analytics required to make informed decisions. FTSE Russell, the world's leading global index provider now tracks how companies generate green revenues – a critical component missing from previous investment models.
Later this year, the UK Green Finance Taskforce, of which London Stock Exchange Group is a member, will set out how the UK will further drive global change.