- E3G welcomes Labour’s ‘Plan for Financing Growth’, and its recognition of green finance as an area of major UK competitive advantage.
- Key commitments include delivering the long-delayed Sustainability Disclosure Requirements, aligning these with ISSB, setting out a clear timeline for the UK’s Green Taxonomy and for large private companies to disclose TPT aligned transition plans. To maximise the benefit for the UK’s businesses, Fis, and communities, these reforms must be accompanied with a whole of economy ‘Net Zero Investment Plan’.
- Labour’s recognition of the role of the financial sector in delivering warmer homes and energy independence is welcome. E3G would encourage Labour to consider the role of the UK Infrastructure Bank in further addressing the upfront costs of home retrofits.
On the UK’s Sustainable Finance framework:
- Labour’s Financial Services Review sets out their vision for the future of financial services in the UK. E3G welcomes the inclusion of sustainable finance as one of Labour’s five key pillars for this sector.
- Labour’s commitment to prioritise delivery of the much-delayed package of Sustainability Disclosure Requirements shows that they are listening to business appetite for green finance.
- The Shadow Treasury’s commitment to financial flow tracking and nod to sectoral investment roadmaps is a welcome move. However, unlocking the full potential of the financial sector requires the full deployment of the government’s toolkit. To maximise the UK’s green growth opportunity, Labour should deliver a UK Net Zero Investment Plan.
- The upfront costs of home retrofits is a major barrier to action. It’s therefore welcome to see a focus on financial solutions which can help make warmer homes affordable for all – including through green mortgages, and loans which spread the upfront cost of the retrofit and sit with the property, rather than the household.
- These need to form part of a holistic package – complete with regulations, grants, support for local authorities and supply chains – in order to drive demand and deliver improvements.
- E3G would encourage Labour to develop a new loan scheme offered via the UK Infrastructure Bank, similar to the German KfW model, which offers attractive home upgrade loans to households.
On the green investment opportunity, Heather McKay, E3G Senior Policy Advisor, UK Sustainable Finance said:
“For Britain, the only growth is green growth, and unlocking green investment is critical to achieve that goal. UK market players have been crying out for stability, security and long-term policy direction to unlock the growing green finance opportunity. Rachel Reeves’ and Tulip Siddiq’s welcome Financial Growth Plan purports to do just that.
Clear, coherent and interoperable financial regulation is essential if the UK is to minimise regulatory burden and capture the UK’s net zero competitive advantage. By committing to roll out the long-delayed package of sustainable disclosure requirements, relaunch the UK as a green standard setter internationally, and prioritise working relationships with other key economic centres, today’s announcement makes clear that Labour is listening to business.”
On a plan to mobilise Green Investment and track financial flows, Heather McKay, E3G Senior Policy Advisor, UK Sustainable Finance said:
“A new Government must harness the potential of the UK’s financial sector to deliver a high growth, energy independent future for Britain. With UK financial institutions representing over £10 trillion AUM united in their call for a Net Zero Investment Plan, Labour’s Financial Services Review has made welcome progress by committing to track financial flows and facilitate smart and effective net zero policy making.
However, mobilising private investment at the pace and scale required for the UK’s net zero transition requires market confidence in our long-term direction of travel. Unlocking green growth requires Labour to go further and set out a whole of economy plan to provide clarity on sectoral, and economy wide, transition pathways. This includes the role powered up public investment must play in kickstarting the UK’s growth engine.”
On home upgrades, Juliet Phillips, E3G Programme Lead, UK Energy said:
“The upfront costs of home retrofits can be a major barrier to households taking action. It’s welcome to see recognition of this in Labour’s new Financing Growth plan, which sets out measures to help finance warmer homes which cost less to run. A long-term loan scheme offered through the UK Infrastructure Bank could help Britain achieve similar levels of retrofit as seen in Germany, where their development bank offers attractive, concessional loans to households. The scheme, which has been running since the 1970s oil crisis, has retrofitted millions of homes across the country.”
– ENDS –
Available for comment
Heather McKay, E3G Senior Policy Advisor – finance, investment, UK Net Zero Investment Plan
+44 (0) 7955 597676, email@example.com
Juliet Phillips, E3G Senior Policy Advisor – green homes, private rented sector, energy efficiency, heat pumps
+44 (0) 7548 097 061, firstname.lastname@example.org
Notes to Editors
- E3G is an independent climate change think tank with a global outlook. We work on the frontier of the climate landscape, tackling the barriers and advancing the solutions to a safe climate. Our goal is to translate climate politics, economics and policies into action. About – E3G
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