Rishi Sunak has proposed new rules that would force UK financial institutions and listed companies to publish their net zero transition plans, including details about how they will decarbonise.

At Finance Day at COP26 on Wednesday, the chancellor set out plans for the UK to become the “world’s first net zero financial centre.”

Sunak, who has served as chancellor since 2020, also revealed plans for a science-based ‘gold standard’ to guard against greenwashing. The standard will be developed by a new Transition Plan Taskforce, made up of industry and academic leaders, regulators, and civil society groups.

At the climate change conference, he also welcomed “historic” climate commitments from private companies to align over $130 trillion – 40 per cent of the world’s financial assets – with the climate goals in the Paris Agreement.

The government said that these commitments will help to create a huge pool of cash that could fund the world’s net zero transition, including the move away from coal, the shift to electric cars, and the planting of more trees.

These pledges come from over 450 firms from all parts of the financial industry, based in 45 countries across six continents, and have been delivered through the Glasgow Financial
Alliance for Net Zero (GFANZ), which was launched by the UK.

The chancellor urged financial firms to “mobilise private finance quickly and at scale” and called on governments to enact bold climate policies to take advantage of these enormous financial resources.

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