The Chancellor made a speech at COP26 in Glasgow today.
"Good morning – and welcome to Cop26 finance day.
It’s easy to feel daunted by the scale of the challenge that we
face.
By sea levels rising; droughts and wildfires spreading; people
forced out of their homes.
But I look around this hall and I feel optimism.
Why?
Because this is the first COP to bring together so many of the
world’s finance ministers, businesses and investors with such a
clear common purpose:
To deliver the promise, made in Paris six years ago, to direct
the world’s wealth to protect our planet.
The good news is that the will is there:
At least 80% of the global economy has committed to net zero or
carbon neutrality targets.
Our challenge now is to deploy the investment we need to deliver
those targets around the world.
To do so, we are accelerating three actions today.
First, we need increased public investment.
And I want to speak directly to the developing countries of the
world:
We know you’ve been devastated by the double tragedies of
coronavirus and climate change.
That’s why the G20 is stepping up to provide debt treatments more
swiftly.
It’s why the IMF are providing a new, $650bn allocation of
special drawing rights – and Kristalina will say more on this
later.
And its why we are going to meet the target to provide $100bn of
climate finance to developing countries.
And while we know we are not yet meeting it soon enough, we will
work closely with developing countries to do more and reach the
target sooner.
Over the next five years, we will deliver a total of $500bn
investment to the countries that need it most.
And we can do more today:
I can announce that the United Kingdom will commit £100m to the
Taskforce on Access to Climate Finance, making it quicker and
easier for developing countries to finance they need.
And we’re supporting a new Capital Markets Mechanism, which will
issue billions of new green bonds here in the UK, to fund
renewable energy in developing countries.
Two tangible, practical examples of how we’re delivering our
promise of $100bn.
But public investment alone isn’t enough. Our second action is to
mobilise private finance.
Let me pay an enormous tribute to Mark Carney for his leadership
– leadership that is delivering results.
The Glasgow Financial Alliance for Net Zero has now brought
together financial organisations with assets worth over $130
trillion of capital to be deployed.
This is an historic wall of capital for the net zero transition
around the world.
What matters now is action: to invest that capital in our low
carbon future.
To do that, investors need to have as much clarity and confidence
in the climate impact of their investments as they do in the
traditional financial metrics of profit and loss.
So our third action is to rewire the entire global financial
system for Net Zero.
Better and more consistent climate data.
Sovereign green bonds.
Mandatory sustainability disclosures.
Proper climate risk surveillance.
Stronger global reporting standards.
All things we need to deliver and I’m proud that the UK is
playing its part.
We’ve already made it mandatory for businesses to disclose
climate-related financial information.
With 35 other countries signing up to do the same.
Today I’m announcing that the UK will go further and become the
first ever ‘Net Zero Aligned Financial Centre’.
This means we are going to move towards making it mandatory for
firms to publish a clear, deliverable plan…
…setting out how they will decarbonise and transition to Net Zero
– with an independent Taskforce to define what’s required.
So: a renewed pledge to $100bn a year of public funding;
Over $130 trillion of private capital waiting to be deployed;
And a greener financial system, under way.
Six years ago, Paris set the ambition.
Today, in Glasgow, we’re providing the investment we need to
deliver that ambition.
Now I know that when people hear about global finance it can feel
remote and abstract.
But we’re not simply talking about numbers on a page.
We’re talking about making a tangible difference to people’s
lives.
About cheap, reliable and clean electricity to power schools and
hospitals in rural Africa.
About better coastal defences in the Philippines and the pacific
islands to protect people from storm surges.
About everyone, everywhere having fresher water to drink…
…cleaner air to breathe…
…better insulated homes in which to live.
That’s the vision we’re asking you to commit to.
That’s the opportunity we’re asking you to invest in.
And that’s the work we’re asking you to begin, today.
Thank you."
