(9.00) Sustainable Finance With US$201.8 billion of additional investments required annually to achieve the EU's 2030 targets, including a 40% cut in greenhouse gas emissions, there is plenty of reason to expect sustainable finance to bulge in the coming years. All coal-burning power by could be phased-out by 2030, and 40 per cent of transport energy needs could be needs by renewable energy by 2035 in Australia. Australia could provide all electricity, heating and fuel needs with renewable energy by 2050. The Green Finance Strategy and the development of sustainable finance standards will help to deliver the significant changes needed across the whole economy to deliver the climate change target and establish the UK as the global leader in sustainable finance. Aligning the regulatory framework to unlock green finance flows and increased capacity to deliver sustainable finance will be key to delivering the UK's commitment to net zero emissions by 2050. The expected transition to a lower-carbon economy is estimated to require around US$1 trillion of investments a year for the foreseeable future. No concrete changes to the existing law have been made so far, but new momentum for Swiss climate policy is expected in the second half of 2019. Under French leadership the G7 group of the 7 largest advanced economies plus the European Union will focus in 2019 on fighting inequality, including poverty induced by climate change. On the sustainable finance front, a key opportunity for 2019 is the agreement of a shared language for green investments, a process led by the EU's work on a taxonomy. Sustainable finance will be a key trend in 2019 as firms appeal to a new generation of customers with different priorities. In 2019, a similar clarification on considering ESG risks as a part of fiduciary duty will be included in a wide-ranging set of Sustainable Finance Initiative proposals that will be voted on by the European Commission. The City of London Corporation, alongside the Government, will fund a new Green Finance Institute to champion sustainable finance in the UK and abroad. These are much-needed: $90 trillion is expected to be spent on infrastructure in the next 15 years, doubling the world's stock of infrastructure on the ground today. The European Commission has recently launched an initiative to define the EU taxonomy for sustainable finance, which will come to fruition in 2019 and will constitute a major reference point. While the IPCC report is an alarming warning it reconfirms the unprecedented investment opportunity that can be unlocked if sustainable finance is mainstreamed. Earlier this year, the Government announced it will fund a new Green Finance Institute alongside the City of London Corporation to champion sustainable finance in the UK and abroad. According to the United Nation Development Programme, the World will require technical assistance and financial supports between US$5 trillion and US$7 trillion each year for the next 15 years to materialize the 17 SDGs. Canada and France will work together within the G7 to advance global progress on sustainable finance. Annual issuance of sustainable asset-backed securities could reach $350 billion by 2035 and notes that it is the fastest growing product under the sustainable finance umbrella. The recommendations of the European Union's High Level Expert Group on sustainable finance have highlighted the need for a common taxonomy on climate change adaptation and metrics for physical climate risk and opportunity disclosures. The European Commission unveiled its highly expected action plan on sustainable finance, aiming to clarify what can be labelled as "green" investment and potentially lowering capital requirements on asset holders. The EU now has a unique window of opportunity to take the global lead on sustainable finance and position itself as the investment destination for low-carbon technologies. The need for climate change is going to take huge financial needs as estimates showed that around $100 trillion to be spent on infrastructure to climate change goals. See full forecast Last updated: 22 October 2019 Hi, Would you like a quick online demo of our service from an experienced member of our team? Yes No
