Capital markets in the spotlight in fight against climate change (Press release)

The vital role of capital markets in tackling climate change has been ignored for too long, Climate Change Minister Greg Barker will say today as he launches the Capital Markets Climate Initiative (CMCI) at the London Stock Exchange.

Opening the conference with Boris Johnson, Mayor of London, Greg Barker will highlight the City of London’s potential to become a global hub for green finance and why low carbon investment is a huge opportunity for the UK’s financial services industry.

The Department of Energy and Climate Change is bringing together key players from the City with international financiers and policy makers, with the initiative aimed at driving green economic investment in emerging economies and identifying how the current barriers to new investment can be dismantled.
The CMCI aims to help unlock the private sector’s ability to help meet the $100 billion of new green investment required annually by 2020 to tackle climate change in developing countries.

Greg Barker said:

“The vital role of capital markets in tackling climate change has been overlooked for far too long. The finance needed to help developing countries become low carbon isn’t flowing at the rate and scale needed.
“However, this is a huge opportunity for the UK financial services industry to grab a share of a completely new international market that will be worth billions in the years to come.
“I have convened today’s meeting to bring together our key players from the City and internationally to help drive green economic investment.
"We want the City of London, with its unique expertise in innovative financial products, to lead the world and become the global hub for green growth finance. We need to put the sub-prime disaster behind us and focus back on investment in genuine wealth creation and in ways that don't damage the environment”.

Mayor of London, Boris Johnson, said:

“As the powerhouse of the UK's economy, it is vital that London remains at the forefront of low carbon advancement. That's why City Hall has teamed up with others to set up the £100m London Green Fund to provide investment for climate change programmes and to prove their commercial viability. I want to ensure London's competitiveness as a leading global city and the Capital Markets Climate Initiative is a great opportunity to help us do that.”

Economic Secretary to the Treasury, Justine Greening, said:

"Private finance is vital to tackling climate change and today's discussions will help ensure that the Government has a full understanding of what can be done to foster this. We need to make sure that we get the policy framework right in order to unlock large-scale private investment for clean technologies both here in the UK and internationally."

Xavier Rolet, Chief Executive Officer, London Stock Exchange Group, said:

“We are delighted to be hosting the launch of the CMCI. The London Stock Exchange is already home to over 100 clean tech firms, with our market’s deep pool of equity capital powering the development of low carbon companies from around the world.
“But we want to do more, and by working together, building on the UK’s leadership in green technology and harnessing the global expertise gathered here today, we can help build a vibrant business environment for the low carbon age.”
The International Energy Agency estimates that the total investment required by 2030 to reduce emissions by 50% by 2050 is around $1 trillion per year. Between 2005 and 2009 investment in clean energy grew by 230%, with $162 billion invested globally last year.

The UK has a leading position on clean energy investment. Amongst the G20, the UK was the fourth country in terms of five-year growth (2005-2009) in clean energy investment with around $11.2bn being invested in 2009 alone, according to Pew Center findings.

The London Green Fund is made up of contributions of £50 million from the London European Regional Development Fund Programme, £32 million from the LDA and £18 million from the London Waste and Recycling Board.
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31 March 2010 - Press Release - Government departments publish plans to tackle climate challenges

Today the UK Government became the first in the world to publish plans that will set out how every major department will address the challenge of climate change in the UK.
The Carbon Reduction Delivery and Adaptation Plans detail each department’s commitment to minimise the damage of climate change, by reducing emissions and by preparing for inevitable change in the UK climate.
These plans are being published alongside a single overview of what Government is doing: Climate Change: Taking Action – Delivering the Low Carbon Transition Plan and preparing for a changing climate.
Publishing the plans Environment Secretary Hilary Benn said:
‘These plans demonstrate how each individual department will work to reduce emissions and adapt their own estates, operations and policies.
‘There can be no mistaking that some climate change is inevitable and we will need to adjust the way we live our lives to meet these new challenges and take advantage of new opportunities where possible. These plans are by no means the final word, but are a step towards the low carbon, well-adapted society that we need.’
Energy and Climate Change Minister Joan Ruddock said:
“The overwhelming scientific evidence shows that human induced climate change poses a huge threat to the world and we must recognise the challenge this presents to all aspects of our economy and daily activities.
“These plans show Government’s clear and unwavering commitment to reducing emissions, increasing energy efficiency and providing greater opportunities in the low carbon economy.
“The UK is a leader in international efforts to tackle the challenges of climate change. By linking each department’s primary objectives to the challenges posed by climate change, government will lead by example.”
The Intergovernmental Panel on Climate Change highlights that countries will experience further warming over at least the next 30-40 years due to past emissions because of the time lag in the climate system. In the UK we are likely to see warmer, wetter winters and hotter drier summers with increased risk of coastal erosion and severe weather.

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