City of London Corporation invests £2m in UK's Green Finance Institute
The City of London Corporation has pledged to invest £2m in the UK's new Green Finance Institute once the new body launches next year.
The company, which is the governing body of the capital’s Square Mile financial and commercial district, confirmed on Monday (10 September) that it will provide the funding over a three-year period and that the investment will be matched by the Government.
The Institute was announced by Chancellor Philip Hammond in June in a bid to develop the UK’s green finance market and help to mobilise the investment required to reach the country’s climate targets.
The launch came after research from the Global Commission on the Economy and Climate Change found that $93trn of global infrastructure investment will need to be made between 2015 and 2030 if the world is to meet the aims of the Paris Agreement.
The City of London Corporation’s policy chairman Catherine McGuinness said the newly announced funding would “play an important role” in helping to set up the Institute.
“Demand for sustainable finance is rising rapidly around the world and London is well-placed to provide the expertise and investment necessary to help the sector tackle climate change,” she said.
“I’m delighted that the City of London Corporation is working in close partnership with the Government to ensure the Institute builds on the UK’s existing green finance offer and ensure we remain at the cutting edge of this fast-growing market.”
The launch of an Institute to develop the UK’s green finance market was a key recommendation from the Government’s green advisers, The Green Finance Taskforce, in March.
Green finance boon
The funding announcement comes shortly after research from sustainable investment firm Triodos Bank revealed that the UK’s socially responsible investing (SRI) market is set to grow by 173% by 2027 to reach £48bn.
Triodos Bank’s findings echoed those of a recent Climate Bonds Initiative report, which found that the global green bonds market grew by a staggering 78% between 2016 and 2017, with investors funnelling more than $150bn into low-carbon projects.
This trend looks set to continue, with SSE, The World Bank and the European Investment Bank (EIB) having launched new sustainable bonds in recent weeks. While the nine-year SSE bond will be used to fund renewable energy projects, the offerings from The EIB and The World Bank have been launched to spur investment in water infrastructure and stewardship.