Last reviewed 15 February 2021
The Government is investing £10 million in a new UK Centre for Greening Finance and Investment (CGFI) which will begin in April 2021.
Leeds and London have been chosen as the two green finance research hubs to help drive green finance and investment. Both centres will be led by a partnership of UK institutions including University of Oxford, the University of Leeds and Imperial College London.
Launching the green finance centres, Energy and Clean Growth Minister Anne-Marie Trevelyan, said achieving a net zero target cannot be achieved “without mobilising private capital”.
“The UK Centre for Greening Finance and Investment in London and Leeds will encourage financial services to turn the tide of their investments and focus on sectors and companies that have a smaller environmental footprint. Doing so will support industries and businesses to develop clean green innovations, creating thousands of jobs across the country – ensuring we build back greener,” Trevelyan added.
The Government says the CGFI will put climate and environment at the heart of UK financial decision making, helping to divert investment away from unsustainable activities such as deforestation and fossil fuels, and towards innovative low carbon industries of the future.
CGFI research projects will provide banks with cutting edge environmental and scientific intelligence to help businesses adapt and gear up for the risks posed by climate change. The research hubs will also help create new world-leading products, services and technologies that tackle climate change impacts, such as measuring flood risk assessments for property investors and data analysis on industrial pollution linked to investment portfolios.
The Bank of England’s executive sponsor for work on climate change, Sarah Breedan, said: “Integrating climate and environmental data and analytics into decision making will allow financial institutions to identify, measure and manage the financial risks and opportunities from climate change, and so support the Bank’s objective to ensure the financial system is resilient to these risks and supportive of the transition to net zero.”
The CGFI includes five major UK universities plus a range of partner institutions, including the World Bank and the UN Environment Programme Financial Initiative (UNEP FI).