In November 2020, the UK will host COP26 in Glasgow. This presents a unique opportunity for the UK – and the UK banking sector – to demonstrate bold leadership and play a central role in catalysing international action on climate change.
The All Party Parliamentary Group (APPG) on Fair Business Banking, Volans and Re:Pattern are together launching an ambitious programme of work to develop a set of policy recommendations ahead of COP26 designed to create a regulatory environment that enables banks to play their part in financing the net-zero transition.
These recommendations will be based on input from a wide range of stakeholders across the business, financial, regulatory and political communities. The lessons learned from this approach will be valuable for audiences within the UK and beyond. Findings will be presented at a special high-level event at COP26 and in Parliament during the autumn.
With the pledged participation of UK banks, UNEP FI will bring this piece of work into the UNEP FI umbrella. As part of the wider work of UNEP FI, this project will be the first of its kind to look at the ground level, regulatory and legislative challenges financial institutions face in implementing the Principles. The event at COP26 will be a unique opportunity for the UK to show leadership in forging a path that tackles the difficult issues that society will face in transitioning to net zero, and the outputs from this can be used as a model for countries around the world
The project will gather insights from all key stakeholders – businesses, banks, regulators and policy-makers – through a mix of interviews, practical multi-stakeholder workshops, broader market studies and surveys.
The project aims to build a collaborative space where businesses and banks can openly discuss the challenges they face, and identify the key regulatory and legislative requirements to facilitate the transition to a net-zero future. By enabling a close collaboration between business, banks, regulators and policy-makers, a more holistic and comprehensive set of evidence-based policies can be developed.
A set of policy recommendations will then be set out in a white paper, which will be released ahead of COP26, with events in both Westminster and Glasgow to disseminate the recommendations and catalyse action on implementation.
- To engage with a broad range of businesses in relation to their net-zero challenges; to understand opportunities and associated banking and finance requirements.
- To establish and explore all of the direct and indirect barriers or obstacles banks face in providing these banking requirements, in particular those which could be addressed by regulatory changes.
- To develop evidence-based targeted policy recommendations on legislation and regulation to facilitate the banking sector’s support of businesses with a focus on net zero (thereby reinforcing the goal of Paris alignment set out in the UNEP FI’s Principles for Responsible Banking).