Letter to government calls for ambitious green finance strategy to tackle cost of living crisis
In line with the new government’s green finance strategy, the New Economy Foundation and its partners have developed five principles for a new vision for green finance that will help address the cost of living crisis, improve the UK’s energy security and accelerate the transition to network zero.
In a joint letter signed by 75 NGOs and academic leaders representing a broad range of policy, research and campaign groups, we call on governments to follow these principles to divert financial flows for a fair net-zero transition:
- clear plan Used to align financial flows with the 1.5C pathway and conservation goals, and independently map progress and investment gaps for public and private financing.
- Actively divert the flow of fundsby reflecting the high risks of fossil fuel lending in regulation and measures to keep green lending costs low in the current high inflation, high interest rate environment.
- The key role of public investment Push for a just transition, and strategic public finance to scale up private investment, for example through the UK Infrastructure Bank.
- strong regulatory framework Used to force the private sector transition to net zero, based on refusal to classify gas or biomass as ‘Green” and set new statutory targets for regulators to align the financial sector with net zero.
- International leading And deliver on global commitments such as expanding grant-based support to low-income countries and ending UK financing of new fossil fuel infrastructure overseas.
You can find the letter and the list of signatories here.
