UK ‘has a responsibility to lead the way’ on going green, Rishi Sunak tells Cop26
Rishi Sunak said the UK has a responsibility to lead the way for a green shift by forcing the city to tackle climate change today.
The Chancellor kicked off the Cop 26 financial day by unveiling plans to force hundreds of Britain’s biggest companies to tackle climate change.
The move will impose an obligation on all UK listed companies to establish net zero ‘transition’ maps over the next several decades, with companies being assessed annually.
Mr Sunak sported a special green ministerial box when he appeared in Glasgow following his arrival with former Bank of England boss Mark Carney.
The Chancellor has vowed to make the UK what he says will be the world’s first financial center aligned with net zero.
He said UK-listed companies will need to publish a transition plan that sets out their path towards greening their businesses.
Those who do not make enough progress, or whose plans are deemed too weak, could face penalties of up to fines or even delisting.
But business leaders have said they need more support and funding to meet the goals – when there are fears bureaucracy pushes them to relocate their headquarters overseas.
The Chancellor said governments in developed countries will keep their six-year pledge to send US $ 100 billion (£ 73 billion) to developing countries by 2023, three years behind the target.
“Although we know that we do not reach it soon enough, we will work closely with developing countries to do more and achieve the goal soon,” he said at the climate conference. Cop26 in Glasgow.
But he added: “Public investment alone is not enough, so our second action is to mobilize private funding.
Rishi Sunak unveils sweeping proposals to “rewire” the economy to reduce global warming
The Chancellor arrived in Glasgow with former Bank of England Governor Mark Carney ahead of a speech to delegates this morning.
Boris: Too early to say if China will make climate commitments
Boris Johnson warned that it was “too early” to say whether China will make the desired climate commitments at Cop26.
The prime minister told lawmakers there was a “mixed picture” but stressed it was important “not to be too negative at the moment” about China.
But his overall assessment appeared to lack its natural optimism as officials continue negotiations at the Glasgow summit.
Liberal Democrat leader Sir Ed Davey voiced concerns over China’s approach at the summit, adding to the House of Commons: “May I ask the PM to confirm the information that I Heard that the British negotiating team in Glasgow are seriously concerned that China’s proposed contribution to reducing emissions – particularly on coal – is going far enough fast or far enough?
“If this is the case, will he pledge to work with all our partners in the West and around the world, especially vulnerable countries which are already watching the waves of climate change hitting their coasts, to take all necessary measures. to pressure China to make the right decision? ‘
Mr Johnson, in his response, said: “What is happening with China is very important but it is a mixed picture, and it is important not to be too negative at the moment.”
Earlier, the Prime Minister had said “we can be happy” with what has been achieved so far at Cop26, but warned that the question of whether the planet can avoid climate catastrophe “is still at stake” .
He told MPs: “Negotiations in Glasgow are almost two weeks old, but we can be happy with what has been achieved so far.”
He added: “The UK has called on the world to act on coal, cars, money and trees. And we started to make progress, substantial progress, tangible progress on three of the four. But the negotiations in Glasgow still have a long way to go.
The Chancellor announced that financial institutions controlling 40 percent of global assets would align with the Paris Agreement’s 1.5 ° C limit for global warming.
A total of 450 institutions have joined the Glasgow Financial Alliance for Net Zero (Gfanz), an organization headed by Mr Carney.
“The $ 130 trillion announced by the Chancellor is more than necessary for the net-to-zero transition around the world,” Carney said today. He added: “What you are hearing today is that the money is there, but that money needs net-zero aligned projects. ‘
Mr Sunak said: ‘Six years ago Paris set the ambition. Today in Glasgow we are providing the investment we need to achieve that ambition.’
He was speaking before Janet Yellen, the US Secretary of the Treasury, who said climate change was a huge opportunity for business.
Finance ministers are meeting in Glasgow following meetings between world leaders on Monday.
Mr Sunak also pledged to make the UK what he said would be the world’s first net zero-aligned financial center.
He said UK-listed companies should publish a transition plan that sets their course for greening their businesses.
Critics of Mr Sunak’s plans fear they will lead companies to leave the City of London to avoid bureaucracy.
Ninety One Plc, a global investment manager based in London and Cape Town, has warned that a slow transition to tackle climate change is needed.
CEO Hendrik du Toit told Bloomberg: “If we stop all funding of what I would call dirty assets, then other forms of funding will come in and own them and not make any transitions. risk.
Gunther Thallinger, Chairman of the Net Zero Asset Owners Alliance, said: “The path to fossil fuel transformation is driven by [these] science-based pathways.
“Such an approach not only allows for a viable transition, but also a fair one. A simple “no investment in fossil fuels – especially oil and gas” would create social and economic inequalities and ultimately slow down the crucial transition to renewable energy. “
He added, “Alliance members are already changing their investment decision-making, enabling them to work effectively with others on transformation at the start of this landmark decade.
“With short-term, science-based targets for the emissions reduction portfolio; reductions in sector emissions intensity; business commitment; and funding the transition, along with neutral monitoring of goals established in the form of a UN-led secretariat, we have taken solid first steps. ‘
The package will see trillions of pounds of City of London-controlled assets diverted from carbon-intensive sectors like coal and oil to initiatives like electric car batteries (stock image)
The Confederation of British Industry greeted the idea cautiously last night, saying companies are “already improving their game”.
But the trade body warned that it was vital that ministers work with their colleagues abroad to produce “broadly consistent” rules to prevent UK-based companies from being penalized.
Rain Newton-Smith, chief economist at the CBI, said the measures were “steps in the right direction” but that it was essential that they did not apply only to the UK.
“These need to be followed by further action by policymakers to develop globally consistent climate and sustainability disclosure standards,” she said.
City veteran Alasdair Haynes, managing director of the Aquis stock exchange, said it was “good for climate information to be incorporated into corporate reports and accounts.”
But he warned, “You have to have proportionality. Many fast growing businesses face high costs to complete their reports, especially when you are looking at the details of what is needed. ‘