UKSIF urges government to stick to net-zero ambitions
September 1st, 2023
The UK Sustainable Investment and Finance Association (UKSIF) has warned the government that climate wavering risks its position as a world leader in sustainable finance.
UKSIF, which represents banks, asset managers and other financial institutions overseeing £1.5 trillion in assets under management, wrote to prime minister Rishi Sunak over rhetoric related to the UK’s net-zero goals.
The association claimed recent polices – such as the decision to issue new North Sea energy licenses and reforms to the carbon market – have “cast uncertainty” on the UK’s near and longer-term climate targets.
Furthermore, UKSIF argued that they risk stopping the finance sector from making the transformative investments needed to reach net zero and grow the economy.
It said without long-term clarity from the government, the £50-60bn per year of investment needed to reach net zero won’t happen.
The letter noted that the UK “could and should lead the world in sustainable finance” and investors will follow if the government is committed to tackling climate change, leading to more private capital flowing into decarbonising technologies and projects.
James Alexander, chief executive at UKSIF, said: “The global competition to capture billions of pounds of private investment in the clean industries of the future is intense.
“Ministers’ recent remarks are undermining investor confidence and putting the UK’s net zero head start at risk.”
The association called for the government to make clear that important policy pillars, such as predictable carbon pricing mechanisms, the transition to zero-emissions vehicles and improved energy efficiency standards for the private rented sector will not be changed.
“This is essential so that our sector can help drive capital towards innovative British companies and infrastructure, and deliver prosperity across the UK, improving productivity, pay and creating 1.7 million ‘green collar’ jobs,” it noted.
The letter follows the UK’s Financial Conduct Authority (FCA) delaying publishing its final Sustainability Disclosure Requirements (SDR) until Q4 2023, the second time it has been delayed.
Last Updated: 1 September 2023