Green Finance

Lord Teverson Excerpts

Wednesday 31st October 2018 Lords Chamber

Asked by

[Lord Teverson]

To ask Her Majesty’s Government what action they will take to support the United Kingdom as a global green finance centre following the City of London’s fall to third place in the Global Green Finance Index published in September.

[Lord Teverson (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I bring to the House’s attention my non-financial interest as a trustee in the Green Purposes Company.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government place a high priority on green finance and take extremely seriously the UK’s position as a leading centre. To support these efforts, the Government will publish a green finance strategy in spring 2019. The strategy will set out the Government’s green finance ambitions as well as new actions that the Government will take to complement existing efforts.

[Lord Teverson]

I thank the Minister for that reply. In many ways, I welcome the Government’s enthusiasm in this area, but a great opportunity was lost this week in the Budget when the Chancellor did not announce that the UK would issue a green sovereign bond. If we exhort that corporate green finance bonds should be issued in this country, we should be an example and issue a green sovereign bond. Does the Minister get that?

[Lord Bates]

I get the question, but I do not necessarily agree with it. Green finance is exciting and is growing, and the City of London is at the forefront internationally. We are ranked third in the league table that the noble Lord mentioned, but first for the quality of the green finance. Our approach is that where the private sector—the City—provides leadership in developing these investments, that is the best outcome and the Government should support it through our strategy but should not necessarily participate and potentially crowd it out.