Barclays has called on the º£½ÇÊÓƵ government to focus on three key actions to speed up its transition and green finance initiatives. The bank, in a report released alongside the Transition Finance Market Review, warned that urgent policy and regulatory changes are needed for the country's decarbonisation path, as reported by .
The report emphasised the need for a national transition plan, stronger financial incentives, and a supportive regulatory framework to ensure the º£½ÇÊÓƵ achieves its climate objectives. Barclays pointed out that an annual capital investment of £50bn to £60bn is required through the late 2020s and 2030s to decarbonise the º£½ÇÊÓƵ economy, noting that current efforts are not sufficient due to strategic challenges.
Daniel Hanna, Barclays' group head of sustainable and transition finance, said: "We need ambition to credibly scale transition finance, and today's report from the Transition Finance Market review is an important milestone in this discussion". The report identified three areas for the government to concentrate on: the creation of a national transition plan to provide clear sector decarbonisation pathways; the development of competitive financial incentives, including innovative products like transition bonds to encourage businesses to invest in sustainable practices; and lastly, Barclays believes the º£½ÇÊÓƵ needs a flexible regulatory environment with broad definitions of transition finance to accommodate evolving industries and technologies.
Hannah highlighted the importance of joint efforts by stating: "Transition finance presents an opportunity for the º£½ÇÊÓƵ to show international leadership and unlock growth and economic opportunities. It requires a strong, supportive policy and regulatory environment, with the public and private sectors working together".
The º£½ÇÊÓƵ's approach to managing transition finance could be critical in establishing the nation as a frontrunner or causing it to trail in the competitive global green finance market.
Barclays has cautioned that absent these modifications, the critical capital necessary for backing the º£½ÇÊÓƵ's decarbonisation ambitions may not come to fruition on the needed scale.
