UK Financial Sector Calls for Climate Finance Leadership at COP30
As world leaders convene in Belem, Brazil for the COP30 climate summit, Britain's financial services industry is pushing the government to position the UK as the global leader in transition finance. The City of London Corporation emphasises this represents a crucial opportunity to mobilise private capital towards achieving net zero targets.
New Guidelines Set Global Standard for Credible Investment
The recently published Transition Finance Guidelines by the Transition Finance Council are poised to bring much-needed coherence to climate-focused markets. Currently in their final consultation phase before international adoption in March 2026, these guidelines establish clear criteria for credible transition finance.
They define what constitutes effective climate investment: science-based decarbonisation plans, transparent milestones, and measurable outcomes. This framework gives investors the confidence needed to support the economic transformation from high-carbon to low-carbon activities.
Autumn Budget Critical for Unlocking Private Capital
The City Corporation is urging immediate government action in the upcoming Autumn Budget to align Britain's public finance institutions behind a single strategic objective. The focus should be on building investable transition markets and reducing risks for private capital.
According to the Transition Finance Market Review commissioned by HM Treasury and the Department for Energy Security and Net Zero, getting the framework right could mobilise tens of billions in additional private investment annually. Public guarantees, first-loss tranches and co-investment funds can catalyse private backing for new technologies in heavy industry, transport, and construction.
Policy Chairman Chris Hayward states that London's financial and professional services sector is already building the infrastructure for this transition. Banks are developing sustainability-linked loans, asset managers are creating transition funds, and legal and accounting firms are establishing verification systems to ensure trust and transparency.
The foundations for UK leadership are firmly in place. With coordinated action across government, regulators and markets, Britain can transform climate ambition into concrete action while driving sustainable economic growth across all regions.
