While much attention has been paid to the need to raise climate finance from public sources, such as nation states and multilateral development banks, there has been less attention on how to raise private finance.
It is estimated that $125trn of investment is required globally to decarbonise the economy, of which $32trn is required by 2030 with about 70% of such investment needs to come from private finance. The financial and related professional services industry has significantly increased its support for net zero in recent years.
Whether it be mobilising capital to scale climate solutions, financing firms to transition to net zero, being active stewards to drive wider economy decarbonisation, accelerating the managed phase out of high emitting assets, or developing the data and methodologies required to make informed investment decisions, the industry’s contribution is on a scale that would have been deemed unimaginable only a few years ago. But the potential is bigger still.
Through research undertaken with financial and related professional services firms, the question this report attempts to answer is: how can the UK government realise the industry’s full potential as a catalyst to enable the transition further and faster?
The report identifies a number of barriers, risks and challenges that are currently preventing the financial and related professional services industry from scaling up its support. These include: