How can green finance and the UK financial sector support the transition to a low carbon economy and what are the risks to financial stability posed by climate change and threats to the natural world?

Background

The Financial Sector section covers a broad range of issues that relate to HM Treasury's responsibilities for financial services policy and financial stability. The department is responsible for promoting an internationally competitive financial services sector that supports sustainable growth across the UK, at the same time we are responsible for ensuring the stability of the financial system and through that the stability of the UK economy.

Next steps

Get in touch with HMTResearch@hmtreasury.gov.uk

Source

This question was published as part of the set of ARIs in this document:

HMT Areas of Research Interest October 2024

Topics

No topics assigned yet

Research fields

No research fields assigned yet

Related UKRI funded projects


  • CERAF

    Climate and environmental (CE) risks (CER) to our economy and society are accelerating. CER include climate-related physical risks such as floods, storms, or changing growing seasons; climate-related transition risks suc...

    Funded by: NERC

    Lead research organisation: University of Oxford

    Why might this be relevant?

    The project addresses how green finance and the UK financial sector can support the transition to a low carbon economy and the risks posed by climate change to financial stability.

  • Financial risk and the impact of climate change

    In 2015, the Governor of the Bank of England issued a stark warning that both the impacts of climate change and those of climate policies could have pronounced effects on the UK's financial and insurance industries. At t...

    Funded by: UKRI

    Lead research organisation: The Open University

    Why might this be relevant?

    The project focuses on characterizing and quantifying climate-related transition risks and their impact on financial stability, aligning with the question's concerns.

  • Nature Based Solutions Analytics platform for Financial Services

    Our project is looking to provide detailed independent verification and audit of the impact of Nature-based Solutions (NBS) to mitigate climate change to the financial services sector thereby encouraging more investment ...

    Funded by: Innovate UK

    Lead research organisation: ALO MUNDUS LIMITED

    Why might this be relevant?

    The project focuses on providing verification and audit of Nature-based Solutions impact on climate change for the financial sector, partially addressing the question on how green finance can support the transition to a low carbon economy.

  • Integrating Nature-Climate Scenarios & Analytics for Financial Decision-Making (INCAF)

    Over half of global gross domestic product is dependent on nature, yet the past decades have seen unprecedented damage to ecosystems and declines in biodiversity due to adverse human activities. Financial institutions (F...

    Funded by: NERC

    Lead research organisation: University of Oxford

  • Integrating Nature-Climate Scenarios & Analytics for Financial Decision-Making (INCAF)

    Over half of global gross domestic product is dependent on nature, yet the past decades have seen unprecedented damage to ecosystems and declines in biodiversity due to adverse human activities. Financial institutions (F...

    Funded by: NERC

    Lead research organisation: UK CENTRE FOR ECOLOGY & HYDROLOGY

  • Scope 3 emissions check model for real-time consumer loan decision process (S3-ECheMo)

    S3-ECheMo is an innovative approach to scoring the environmental friendliness of consumer loan requests (based on the intended activity) and integrating the obtained information with credit risk assessments in pricing in...

    Funded by: Innovate UK

    Lead research organisation: MODIRECT LIMITED

  • Net0Chain: A blockchain based sustainable model using climate risks and resilient financial model to reduce carbon in the supply chain

    Recently, significant strides have been made towards bridging the divide between financial risk assessment and climate scenario modelling methodologies. Notwithstanding, most existing approaches for assessing physical an...

    Funded by: Innovate UK

    Lead research organisation: AITECH CAMBRIDGE LIMITED

  • SME Green Credit Score

    This project aims to develop a Green Credit Score which will enable financial institutions and public authorities to assess Climate and Environmental Risk (CER) for small and medium enterprises (SMEs). The availability o...

    Funded by: Innovate UK

    Lead research organisation: 4MOST (EUROPE) LIMITED

  • Climate Searchlight

    Our project aims to develop a web-based tool - Climate Searchlight - which allows investors, asset managers, asset operators and other stakeholders to make informed decisions regarding the climate risks that may affect a...

    Funded by: Innovate UK

    Lead research organisation: DNV SERVICES UK LIMITED

  • Integrating Finance and Biodiversity for a Nature Positive Future

    Our Vision is to build national capability bridging scientific, finance, policy and third sector communities, harnessing and catalysing world-leading science to enable the greening of finance for nature and mobilisation ...

    Funded by: NERC

    Lead research organisation: UK CENTRE FOR ECOLOGY & HYDROLOGY