The UK Government yesterday held an investor and financier forum to launch it's new Capital Markets Climate Initiative to unlock new investment in low-carbon technologies - as well as make London a global hub for green finance. There was a special emphasis on financing climate change mitigation activities in developing nations.
Commissioned by the UK Conservative Party, the report outlines the need and proposed risk mitigation role of a new Green Investment Bank, and how it would raise and invest funds. It includes an explanation of how Green Bonds could be used to fund the Bank and its activities.
The formal coalition agreement between the UK Conservative and Liberal-Democrats, released today, lists two key initiatives that have been part of Climate Bonds Initiative proposals:
- The creation of a green investment bank.- The provision of home energy improvement paid for by the savings from lower energy bills.
Also in the agreement is the provision of a floor price for carbon, something investors have been calling for.
All three are important and necessary changes relevant to governments everywhere.
For the past six months the Climate Bonds Initiative, working with a range of associated groups, has been pressing political parties in the UK to adopt policies for a "Green Investment Bank" and for "Green Bonds". (You can read more about these proposals in our Climate Bonds discussion paper).
