03 December 2009

The City's role in meeting the climate change challenge

The financial services industry can play a vital role in providing long-term, sustainable solutions to the climate change problem, according to a new research paper published by the City of London Corporation.

'Delivering Copenhagen' calls for policy makers to establish a clear, consistent and certain regulatory framework so that the City can provide the innovative financing techniques needed to meet this pressing environmental issue.

The proposals considered in the report include index-linked carbon bonds, forest-backed bonds, weather derivatives and lower government enforced cap-and-trade limits.

Simon Mills, Environmental Co-ordinator at the City of London Corporation, said:

Climate change is one of the most important issues facing the world today and needs to be addressed by all stakeholders – governments, industry and individuals. The scale of the problem demands a globally coordinated response from both the public and private sectors. Investment in clean technology and low-carbon alternatives is required now if we are not to store up greater problems for future generations.

"There is no doubt in my mind that the financial services industry can help offer the capital and expertise needed to meet this challenge. Firstly, however, businesses must have confidence that the regulatory system will remain clearly defined and stable over the course of any investment."

'Delivering Copenhagen', which is published ahead of the United Nation's climate change conference in Copenhagen from December 7-18, builds on the City of London's pioneering work in helping to launch the London Accord in 2007.

The London Accord, which is the City’s largest collaborative research project, is designed to put London at the cutting edge of investment research into climate change technologies.

Download the Delivering Copenhagen paper

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