The UK government is launching an investigation of how best to grow the UK market for transition finance, convening investors, banks, corporates and other representatives from across the financial services sector for a review lasting at least six months.
The launch of the market review fulfils a commitment set out in the government’s 2023 updated green finance strategy and comes ahead of a consultation on transition plans by HM Treasury, although the timing of this is as of yet uncertain.
According to the terms of reference for the Transition Finance Market Review, it will explore how best to create the conditions for:
- scaling transition-focussed capital-raising with integrity (sustainability-linked debt and transition bonds are mentioned);
- maximising the opportunity for UK-based financial services to develop and export “high-integrity transition finance services”; and
- positioning the UK’s professional service ecosystem as a global hub.
The independent review has been commissioned by the Treasury Lords Minister and the Minister for Energy Efficiency and Green Finance and will be led by Vanessa Havard-Williams, the former head of Linklater’s global environmental and climate change practice and now a consultant at the firm.
The government said the review lead, advisory panel and secretariat would “embark on an outreach programme to engage extensively with stakeholders across industry, academia, the third sector and relevant parliamentary groups to inform the content of the Review and ensure a joined-up approach to UK action”.
The review will take into account the work of the Transition Plan Taskforce (TPT), “have regard” to the forthcoming transition plan consultation from HM Treasury, and the Financial Conduct Authority’s work on TPT-aligned disclosures, transition finance and investment labels.
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