The APPG supports parliamentarians to understand more about sustainable finance.
It brings together policy makers, industry players, academics and practitioners to build political consensus for the changes required in the finance sector to help reach net zero.
The right financial policies can help develop markets, build a resilient economy and ensure finance can flow away from polluting fossil fuels, such as those invested in our pension funds, towards the job-creating, zero carbon sectors of the future.
The green revolution is happening fast, but we need it to go even faster. If necessity is the mother of invention, then the net zero carbon challenge is likely to bring about the greatest period of innovation the world has ever seen.
Whatever constituency you represent, there is enormous potential for transforming jobs and growing green investment in your community. But we need coordinated action to create a Just Transition that works for all.
Isabella Gornall – MD Seahorse Environmental Communications
Research conducted by the LSE and Leeds University indicates that the following sectors have the largest percentage of jobs at risk or requiring upskilling in the transition to zero carbon. Sustainable investment that flows into businesses and projects across the UK can turn these risks into opportunities.
The APPG will provide parliamentarians, industry and campaigners with information about what is needed to accelerate investment into greener businesses, and away from polluting businesses.
As Britain seeks a new role in the world, we could become a global hub for green innovation both in financial products and in the wider economy. That requires leadership and insight from decision-makers, so that we help steer hape the finance sector to meet the needs of decarbonising the economy.
Here are some examples of how we could boost green investment in the UK, create jobs and bring about a more resilient economy. We want to explore with you which will make maximum impact, and then collaborate to make them happen.
As a world leading financial sector, UK banks play a huge role in financing global business. But our financial stability is
at risk from climate changebuilt upon rocky foundations. 15% of the world’s emissions are financed in London and 17% of the dividends paid out on the London Stock Exchange come from high carbon businesses. We need to change the rules of the game and disincentivise polluting investment.
Policy and regulation will be a key enablers of finance flowing into the green businesses of the future. The Green Finance Institute (GFI) in the City of London is working hard to ensure that a pipeline of green finance opportunities opens up here in London and across the world. This pipeline could reconfirm London as a global finance hub for the new green economy.
Green bonds are used to raise money specifically for environmentally- friendly projects. They’re popular with investors because they’re future-proof.
However, the US$168bn of green bonds issued in 2018 is still a long way off tapping the estimated US$100tn pool of potential investment. Policy must lead in this area by introducing clearer definitions for green and transition bonds; introducing long- term strategy for stable investment returns; and recognising climate risk at the Bank of England.
Other countries have also launched Green Sovereign Bonds as a way to finance large green infrastrucutre projects.
Investors know that climate change is one of the biggest business opportunities we’ve ever known. But accessing capital is still a struggle. National policy needs to support innovation by enabling investment to flow.
The APPG will enable parliamentarians to better understand how government can shape markets and enable communities to seize the opportunities offered in a Net Zero UK. For example, intervention to make the electricity market more flexible has lead to innovation in energy storage and smart devices which can save energy at times of low renewable energy supply. Electric- vehicle infrastructure needs policy changes to enable roll-out; energy efficient and smart homes requires better building standards; and Net Zero homes and communities need a government-backed planning regime
The APPG provides opportunities for the finance sector and the energy industry to meet with parliamentarians to discuss the policy and regulatory framework needed to unlock sustainable finance. There will be up to four major events a year, and regular party and issue-specific briefings.
Harriet Baldwin MP
Andrew Bowie MP
Anthony Browne MP
Alex Sobel MP
Sarah Olney MP
Shaun Bailey MP
Alan Whitehead MP
The APPG Secretariat is led by Polly Billington, Director of UK100 and is run in partnership with ShareAction, in association with the Green Finance Institute. We would like to thank Climate-KIC for their seed funding for the APPG.
Antony Manchester, Managing Director, Public Policy EMEA
Ben Caldecott, Director of Oxford’s Sustainable Finance Programme & Advisor to the Green Finance Institute
Catherine Howarth, CEO,Share Action
Isabella Gornall, MD Seahorse Environmental Communications
Lisa Ashford, Ethex – CEO and Director
Rhian-Mari Thomas, CEO Green Finance Institute