WWF-UK                            FSUK0039

Written evidence submitted by WWF-UK

INTRODUCTION

 

1.       WWF is the world’s leading independent conservation organisation. Our mission is to create a world where people and wildlife can thrive together. To achieve our mission, we're finding ways to help transform the future for the world’s wildlife, rivers, forests and seas; pushing for a reduction in carbon emissions that will avoid catastrophic climate change; and pressing for measures to help people live sustainably, within the means of our one planet.

2.      Given the significant policy developments and changes in government that have occurred since we submitted evidence in July 2022, this further evidence seeks to expand on and clarify what action we now must see if the UK is to become a world leading net zero financial centre.

 

 

RECOMMENDATIONS FOR GOVERNMENT

 

  1. ESTABLISH OR TASK AN INDEPENDENT BODY WITH TRACKING GREEN FINANCIAL FLOWS

 


1 https://www.theccc.org.uk/wp-content/uploads/2020/12/The-Sixth-Carbon-Budget-The-UKs-path-to-Net- Zero.pdf, Chapter 5, p239

2 https://www.e3g.org/wp-content/uploads/The-need-for-a-UK-Net-Zero-Investment-Plan_E3G-WWF- Briefing.pdf

 


 

WWF-UK                            FSUK0039

of credible analysis and opportunities presented by an independent body. The analysis could provide business with the insight needed to capitalise on net zero investment opportunities, and identify and inform industry-wide strategic areas where Government and business can work hand in hand to deliver results.

 

  1. COHERENTLY SET OUT HOW IT WILL LEVERAGE REAL ECONOMY MEASURES TO SET THE RIGHT INCENTIVES FOR FINANCE

 

 


3 2022 Climate-related Disclosures Report (natwestgroup.com)

4 https://www.e3g.org/news/investors-managing-3-trillion-in-assets-call-on-uk-government-to-deliver-net- zero-investment-plan/

 


 

WWF-UK                            FSUK0039

 

  1. ASK AN EXPERT BODY TO SET OUT THE UK’S SECTORAL NATURE POSITIVE PATHWAYS

 

 

  1. MAKE TRANSITION PLANNING MANDATORY FOR LISTED AND LARGE COMPANIES AND EXTEND TRANSITION PLANNING TO COVER NATURE RECOVERY

 


5 In the UK, Chapter 3 of the CCC’s 6th carbon budget gives an indication of overall and sectoral decarbonisation pathways: https://www.theccc.org.uk/wp-content/uploads/2020/12/The-Sixth-Carbon-Budget-The-UKs-path- to-Net-Zero.pdf. Multiple sectoral bodies have taken this and provided more detail about how individual sectors might need to transform. At an international level, different bodies have produced decarbonisation pathways for their respective sectors, such as for example, the IEA’s Roadmap to Net Zero Emissions by 2050 for the energy sector: https://www.iea.org/reports/world-energy-outlook-2022/an-updated-roadmap-to-net- zero-emissions-by-2050

6 https://wwf.panda.org/wwf_news/?351590/saving-the-cerrado-how-savannahs-and-grasslands-may-tackle- climate-change

7 https://www.wildlifetrusts.org/natural-solutions-climate-change/peatland

 


 

WWF-UK                            FSUK0039

 

  1. GIVE REGULATORS A SECONDARY OBJECTIVE ON CLIMATE AND NATURE

 

architecture through the Financial Services and Markets Bill (FSM Bill).

 


8https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/114969

0/mobilising-green-investment-2023-green-finance-strategy.pdf

9 https://www.gov.uk/government/publications/fact-sheet-net-zero-aligned-financial-centre/fact-sheet-net- zero-aligned-financial-centre

10 https://livingplanet.panda.org/en-GB/

11 https://www.weforum.org/press/2020/01/half-of-world-s-gdp-moderately-or-highly-dependent-on-nature- says-new-report/

 


 

WWF-UK                            FSUK0039

objective for the regulators on competitiveness and growth,. The regulatory principle on climate currently included in the FSM Bill would not provide a sufficient basis for the regulators to act to facilitate the transition to a Net Zero-aligned Financial Centre, to which government has committed. By the government’s own admission, “the regulators are not required to act to advance their regulatory principles; instead they must take them into account when pursuing their statutory objectives.”12

 

  1. COMBINE MINISTERIAL PORTFOLIOS ON CITY REGULATION AND GREEN FINANCE

 

 

 

 

April 2023

 

 

 


12 FRF_Review_Consultation_2021_-_Final_.pdf (publishing.service.gov.uk)

13 https://www.edie.net/the-uk-must-become-the-world-leader-in-green- finance/#:~:text=There%20is%20fierce%20competition%20by,%241.6trn%20globally%20in%202021.