Mandatory transition plans and GFANZ announcements: Positive Money response

London, 3 November 2021

Responding to the Chancellor’s announcement of mandatory transition plans, as well as a commitment of $130tn in private capital towards net zero from GFANZ on Wednesday, David Barmes, senior economist at Positive Money, said:

“Mandatory transition plans for financial institutions are a step in the right direction and must be implemented urgently, with strict milestones on phasing out financing for fossil fuels and deforestation.

“While it’s positive to see financial institutions scaling up their ‘green’ finance commitments, this announcement says nothing of the billions they’re still pouring into environmentally harmful projects.

“The green transition is too important to be left to private finance. We need public institutions rather than bank CEOs to lead the way in setting standards and delivering green investment. The public investment announced by the UK government so far is nowhere near enough to meet their climate targets, and we will need huge increases to ensure a green transition that is both timely and fair.”

Notes

1. The Chancellor announced £30bn of public investment over three years towards meeting net zero in the Budget last week, which is far below the more than £30bn a year economists say is necessary to meet the government’s net zero target: https://docs.google.com/document/d/1Blt1BVHIz6auaxzwOESsYPkxf5Do642C_gId7bRRpYg/edit

2. Positive Money is a research and campaign organisation working towards a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters. www.positivemoney.org.

For more information from Positive Money or to arrange a briefing/interview with a spokesperson, please contact press@positivemoney.org.uk or Simon Youel on 07817765517