City of London Corporation commits £2m to fund Green Finance Institute
The Green Finance Institute has received a boost after the City of London Corporation agreed to provide £2 million in funding for three years as the new body prepares to launch next year.
The funding, which was agreed by the City Corporation’s Policy and Resources Committee, will be matched by the Government.
The Green Finance Institute will champion green and sustainable finance in the UK and overseas, enhancing London’s position as a world leader in this field by bringing together the private and public sector to develop new opportunities.
The Global Commission on the Economy and Climate Change estimates around $93 trillion of global infrastructure investment between 2015 and 2030 will need to be green in order to meet climate change commitments. The green bond market grew by 78% between 2016 to 2017, to $155 billion in green bond issuances.
Catherine McGuinness, Policy Chairman at the City of London Corporation, said:
“This funding will play an important role in helping the new Green Finance Institute get up and running.
“I’m delighted that the City of London Corporation is working in close partnership with the Government to ensure the Institute builds on the UK’s existing green finance offer and ensure we remain at the cutting edge of this fast-growing market.
“Demand for sustainable finance is rising rapidly around the world and London is well placed to provide the expertise and investment necessary to help the sector tackle climate change.”
Announcing the Institute in June, Philip Hammond, Chancellor of the Exchequer, said:
“The UK is already leading the charge in this market – with nearly 80 green bonds raising more than $24 billion across seven currencies.
“But if we are collectively to meet our global climate goals, we will need to mobilise $90 trillion by 2030.
“And it is my ambition that the UK leads the world in financing this investment.
“We are establishing a new Green Finance Institute here in London, jointly funded by government and the City of London Corporation, so that firms from across the world can access our one-stop-shop for world-leading climate science, and for capital.”
In March, the Green Finance Taskforce published a set of recommendations to the government and industry. The first of these was to establish an Institute to develop the UK’s Green Finance market. It will also play a vital role in our international engagement on financial services, especially in emerging markets where green finance demands are growing rapidly. Further details on the Green Finance Institute Advisory Group are available here.
The City of London Corporation also hosted the international Green Finance Summit at Guildhall in July this year. The conference brought together in the region of 600 delegates from across the financial and professional services industry.