"2020 must be a year of climate action where everybody’s in, and that includes the world’s leading financial centre."
In a statement released today, the Bank of England said the objective is that "every professional financial decision will need to take climate change into account".
Boris Johnson recently appointed outgoing Bank of England governor, Mark Carney, as his finance adviser for COP26.
COP26 says the "right framework for reporting, risk management and returns" will help finance a whole economy transition. It added that to achieve net zero, "every company, bank, insurer and investor will need to adjust their business models for a low carbon world".
The statement said that private finance is "uniquely placed to help support the transition required" by amplifying changes in attitudes, consumer preferences and climate policy.
The launch event was hosted by the Lord Mayor of London at Guildhall and began with Sir David Attenborough setting out the scale of the climate challenge. During the morning, leaders from the private finance sector and related fields discussed the actions they were already taking to realise the opportunities and manage climate risks, and how to accelerate action for COP 26.
Mark Carney said: “Given the scale of the climate challenge and the rising expectations of our citizens, 2020 must be a year of climate action where everybody’s in, and that includes the world’s leading financial centre. To identify the largest opportunities and to manage the associated risks, disclosures of climate risk must become comprehensive, climate risk management must be transformed, and investing for a net-zero world must go mainstream.”
COP 26 President and Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, added: "This is a pivotal year for the planet as we raise our ambition on emissions reductions and build an economy resilient to climate change. But this is not just about the work of individual governments. We are calling on action from everyone - businesses, civil society and each part of the global financial system to meet the Paris Agreement goals. COP26 is also a critical moment to enhance support for developing countries. We are determined to work together to deliver a prosperous, zero carbon future for all."
