COP26: Rishi Sunak says UK will become first 'net zero-aligned' financial centre

British finance minister Rishi Sunak on Wednesday, 3 November 2021, said that the world leaders are "rewiring" the global finance system to deal with climate change. He further stated at COP26, that the United Kingdom will become the first net-zero financial centre. On the finance-themed day of the COP26 climate summit in Glasgow, the chancellor announced that firms controlling roughly 40% of global assets will align themselves with the Paris Agreement 1.5C warming limit, creating more than $130 trillion of private capital ready to be deployed and a greener financial system underway.

"This is a historic wall of capital for the net zero transition around the world. The UK will go further and become the first net zero aligned financial centre. Six years ago Paris set the ambition. Today in Glasgow we are providing the investment needed to deliver that transition," he claimed while speaking at the COP26 climate summit in Glasgow.

The UK government will require British financial institutions and UK-listed corporations to publish plans on how they will decarbonize and transition to net-zero emissions, according to the Chancellor, as part of comprehensive changes aimed at preventing greenwashing. An independent panel will outline what is required next year, with corporations having to present plans by 2023. The $130 trillion in assets aligned with the Paris Agreement originates from 450 companies that are members of the Glasgow Financial Alliance for Net Zero (GFANZ), which is chaired by Mark Carney, former governor of the Bank of England and UN special envoy for climate action and finance.

The Chancellor suggested three threads for finance ministers around the world to consider: Public investment, Private investment and Greener financial system. Furthermore, The UK will compel financial organisations and major corporations to disclose plans outlining how they intend to achieve net-zero emissions.

Johnson urges for 'Dramatic Action' 

Earlier on Monday, UK PM Johnson urged international leaders to take drastic action to combat climate change. It's one minute to midnight, and we need to act now, he told a gathering of more than 130 leaders in Glasgow, Scotland. According to a PTI report, Johnson stated that we must shift from talk and debate and discussion to focused, real-world action on coal, vehicles, currency, and trees. What we need are explicit promises and concrete deadlines for change, not more dreams, aims, and aspirations, as valuable as they are. We need to be serious about climate change, and the rest of the world needs to know when that will happen, he continued.

Image: AP