IPPR argues Sunak’s green finance ambitions lack credible plan

Responding to Rishi Sunak’s commitment to make the City of London the world’s first “net zero finance centre” the the Institute for Public Policy Research (IPPR) think tank welcomes the ambition, but warns that without legal targets and adequate public investment to drive the transition, a ‘climate-void’ remains in the government’s net zero strategy.

Luke Murphy, head of IPPR’s Environmental Justice Commission said:

“The Chancellor’s green finance ambitions should be praised, but delivery and implementation are another matter. Targets are welcome, but they are only meaningful if they’re backed by a credible plan to deliver them.

“Mandating the UK’s financial institutions and listed companies to publish transition plans is a step forward and is a policy that IPPR’s Environmental Justice Commission has called for. But, to succeed, these transition plans must be truly grounded in the science. This will be a key test as to whether they are meaningful.

“Worryingly, the Chancellor’s plans also fail to require the setting of legal targets. We also need to see plans and targets extended beyond just emissions to include nature-based targets and for the creation of a public league table so the public can compare company performance.

“Finally, while commitments on private finance are welcome, it is no substitute for the vital public investment needed to drive the transition and, in that regard, there remains a climate-void at the heart of the UK government’s net zero strategy.”