A Labour government will boost global investment into the United
Kingdom by making the UK the green finance capital of the world,
Labour Leader has pledged, ahead of a
meeting [Friday] with major international investors at COP28 in
Dubai.
In the meeting, hosted by a major international bank at Expo city
in Dubai, will underline Labour’s
commitment to make the UK the leader on green finance, in a
measure that could bring billions of investment into the UK
economy.
and will set out how a Labour Government would mobilise
private finance behind climate action by requiring financial
institutions and FTSE 100 companies to publish their carbon
footprint and adopt credible 1.5C-aligned transition plans.
Hailing the City of London's historic role as the centre of the
global financial system, Labour’s plans will ‘safeguard and
enhance Britain’s reputation as a powerhouse of financial
services, by grabbing with both hands the responsibility and
opportunity that green finance presents.’
As a major global financial centre, one of the largest impacts
the UK could have on global emissions would be to mobilise its
trillions of pounds of private finance in pursuit of the
ambitions of the Paris Agreement and establish the UK as the
green finance capital of the world. While the UK is only 1% of
global emissions, the investments of companies and financial
institutions based in The City of London account for
approximately 15% of global emissions.
By leading in shaping the framework for green financing, the UK
has the potential to become a magnet for private investment,
increased capital flow, creating jobs and driving growth. Leading
businesses are already drawing up and publishing robust
transition plans. Ahead of COP26, major UK companies and
financial institutions collectively responsible for over £4.5
trillion in assets - including BT, Tesco, Aviva, and Legal &
General Investment Management - wrote to the UK government
calling for net zero transition plans to be a mandatory
requirement for large firms.
With a Labour Government, public and private finance would be
pulling in the same direction in the drive to net zero, and in
doing so unleashing the opportunities the energy transition
promises to every region of the UK.
The pledge complements the direction of travel from Keir
Starmer’s Labour which has spent the last three years rebuilding
its relationship with business. In a symptom of the change
Starmer’s leadership has brought about, the Party is now a strong
advocate for public private partnerships as a means of returning
to economic growth.
Starmer’s commitment to harnessing international relations for
the benefit of his domestic agenda is also a marked shift for
Labour in recent years. While the Conservative’s retreat from the
world stage through diplomatic gaffes, willingness to break
international law, and failure to use maximise alliances, Labour
is committing to use the UK’s role in the G7, G20 and other
multilateral organisations to encourage cooperation and
collaboration, for the benefit of working people at home.
British businesses such as Centrica, BT, and Tesco have spoken
out in recent months about Rishi Sunak’s abdication of leadership
on net zero, with warnings from businesses and major investors
alike that the Conservatives’ approach is undermining investment
into the UK.
Against a backdrop of the ongoing cost of living and energy
security crises that have hit families and businesses across
Britain, is attending COP28 to show
that a Labour Government will be “fighting for Britain” to bring
in jobs and investment, which will cut bills, make the UK energy
secure, and live up to the UK responsibility to play a role in
tackling the climate crisis.
In a full day of meetings with heads of state, business leaders,
and alongside an event with international investors, will set out that it elected
as Prime Minister, he would ensure Britain plays a leading
international role in the drive to net zero, not only as a moral
imperative, but as an economic one.
In stark contrast to the Tories, Starmer will hail the
‘extraordinary benefits that the energy transition could offer
the UK’, calling it ‘the great economic opportunity of the 21st
Century to kickstart the economy and drive up living standards
for everyone.’ He will highlight the divide in UK politics
between a Conservative Government doubling down on failure to
positively seize on net zero in the national interest, and his
prospective Labour government willing to run toward it as
pace.
Ahead of the investor roundtable, MP, Leader of the Labour
Party, said:
“Britain’s financial services are a national asset, with world
leading expertise. There’s an enormous opportunity in setting the
agenda on green finance; Labour will partner with business to
grab it will both hands.
“For too long we’ve had a UK government sending the wrong signals
when it comes to net zero. While the Conservatives use it to
appease their party and sow political division, my Labour
government will harness it in the national interest, to
turbocharge growth.
“Our mission to make Britain a clean energy superpower by 2030
will provide the long term, stable conditions needed to open the
doors to investment in our country. Business will know that with
Labour, they have a partner that will work with them to remove
hurdles, mobilise their experience, and back their ambition.
Together we can drive growth, create bills, lower jobs, and
secure the UK’s energy independence.
“With a Labour Government, Britain will stand tall in the world
again - leading internationally, backing business, and delivering
for working people at home.”
Ends.
Notes
- A Labour Government would ensure companies are not just
reporting on compliance with the Paris Agreement but acting on it
too by creating a stable framework for compliance, the UK will
uptick its attractiveness for investment by providing certainty
for investors in the long term. This would underscore the
opportunities that the green transition promises, while ensuring
an orderly transition that does not leave people and communities
behind.
- Other jurisdictions are already beginning to shift in this
direction. There is some discussion at the G20 and G7, and the EU
is considering requiring transition plans through various
regulatory vehicles. And transition plans have emerged as a core
component of the guidance of the Taskforce on Climate-Related
Financial Disclosures (TCFD) - work led by Mark Carney.
- Many companies and financial institutions are already taking
a lead. Labour called for this prior to COP26. The Government
then announced at COP26 that it would make the publication of
transition plans for asset managers, regulated asset owners, and
listed companies - but only on a looser “comply or explain”
basis. Government progress to implement this regime has stalled
and there is now no timeline for its take-up. Regulatory hurdles
remain for its implementation and sanctions for non-compliance of
climate disclosure are also insignificant, and are perceived to
be so.
- Many companies and financial institutions are already taking
a lead. Ahead of COP26, major UK companies and financial
institutions collectively responsible for over £4.5 trillion in
assets, including BT, Tesco, Aviva, and Legal & General
Investment Management wrote to the government calling for net
zero transition plans to be a mandatory requirement for large
firms.
