London’s finance expertise is leading the global charge towards a greener planet

Tackling climate change presents an unprecedented challenge for us all – politicians, businesses and individuals alike.

It’s estimated that some $90 trillion will be needed globally by 2030 to achieve international sustainable development and climate objectives, which is undoubtedly a daunting task. But it is also a significant opportunity.

The UK’s financial and professional services sector is rising to this challenge, with City firms playing a vital role in sharing their expertise and experience across the globe in fast-growing areas such as green finance.

Last week, I visited Colombia and Brazil – not only two of our planet’s most biodiverse countries, but also two of Latin America’s largest economies. While I was there, I met the governor of Colombia’s central bank, and many other leaders, including from Banco do Brasil and the Sao Paulo Stock Exchange.

A common thread that ran throughout all my engagements was how a leading global financial hub like London can help Colombia, Brazil, and other emerging nations across the world to realise their economic ambitions.

After all, this would create prosperity and bring millions out of poverty, without coming at the expense of our environment.

This is a challenge which transcends borders, and is faced by all of us involved in a highly interconnected global ecosystem.

Sustainable development is quite rightly the focus for Colombia and Brazil, as they seek to create a lasting legacy that will benefit future generations. And as ever, London’s spirit of innovation means that it is uniquely placed to partner with the likes of these nations to deliver such a legacy.

There are three main reasons that we are able to do this.

First, London is at the forefront of shaping the burgeoning green finance sector for the future, as demonstrated by the fact that we are the world’s largest issuer of green bonds. We will be showcasing this offer at the third Green Finance Summit, which will be held at Guildhall in on 2 July.

Not only that, but – secondly – we are the largest asset management hub in Europe, managing £8 trillion, more than the next three countries put together.

Finally, the strength and depth of our expertise in infrastructure finance is unparalleled – the London Stock Exchange, for instance, hosts over 480 infrastructure-related companies operating in more than 65 countries. It is also responsible for nearly 40 per cent of all FX trading – that’s more than New York and Tokyo combined.

Our leadership on building the green finance sector, plus the liquidity and depth of experience that we have in infrastructure finance, put London in a unique position to tackle the challenges facing the Colombian and Brazilian economies, fostering sustainable growth and prosperity.

It is no surprise, then, that President Duque of Colombia has called London a key ally in the fight against climate change.

Together, we can build a global economy in which infrastructure finance, and indeed all finance, is green by default.