With less than twelve months to go until COP26, Catherine McGuiness, Chair of the Policy and Resources Committee of the City of London Corporation outlines the many ways in which the UK and India can collaborate in the fight to green the global financial system.
These last few months have been tough for both the UK and India, as well as so many others around the world. However, over the last few weeks I have seen plenty to suggest that - as we look to emerge from the shadow of the pandemic over the coming years - there is a bright shared future for the UK and India with regards to closer collaboration in financial services. And what's more, is that this must and will be a green future.
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As we look to emerge from the shadow of the pandemic over the coming years - there is a bright shared future for the UK and India with regards to closer collaboration in financial services.
Firstly, I am hugely encouraged by the joint statement made by UK Chancellor Rishi Sunak and Indian Finance Minister Nirmala Sitharaman at the 10th UK-India Economic and Financial Dialogue, which made a significant commitment towards continued work together in sustainable finance. Specifically, it sets out the aim of bringing India's $1.4 trillion National Infrastructure Pipeline and the City of London - the global home of green finance and long-term institutional capital - closer together. I have no doubt this will bring even further impetus to our work alongside the Federation of Indian Chamber of Commerce and Industry in the UK-India Sustainable Finance Working Group. I was also delighted that the India-UK Financial Partnership, of which I am a member, received a renewed mandate to continue its important work, and we'll be looking to continue driving bilateral trade forwards also.
The potential benefits of this work cannot be understated- by leaning on the UK's expertise as a means of mobilising capital, we can support a prosperous transition for communities across India which exceeds development targets. In this respect the UK-India Capital Markets Working Group, which the City Corporation recently established in partnership with the IUKFP, is another step forward.
Of course, a keystone for achieving all of these ambitions is ensuring that sustainable capital is indeed sustainable. That was at the heart of the recent Green Horizon Summit here in the City of London, which we co-hosted with the World Economic Forum and the UK's Green Finance Institute.
Focusing on how we convert ambition into action with regards to sustainable finance, we saw a stellar list of speakers contributing to the debate, such as HRH The Prince of Wales, Secretary-General of the UN Antonio Guterres and head of the IMF Kristalina Georgieva. The three-day event was attended by more than 2,000 delegates - including more than xxx Indian stakeholders.
A significant moment was the roadmap towards sustainable finance set out by Mark Carney, the former governor of the Bank of England who is now the UN's special envoy for climate action and finance. This put forward a clear strategy for mobilising private finance to support a whole-economy transition to net zero. The City will be a key ally in achieving its key objectives, such as the improvement of climate-related disclosure reporting, improving the measurement and management of climate-related financial risks, helping investors to identify opportunities and strengthening the mobilisation process itself.
The Summit also coincided with the announcement of plans from the Chancellor to launch the UK's first sovereign green bond next year, as well as the adoption of a green taxonomy and a pathway towards mandatory climate disclosures. These are tremendously positive examples of how the UK is making huge strides in the fight against climate change, and are a strong message to investors.
All of this activity provides an exciting backdrop for later in the month, when Lord Mayor of London William Russell will be conducting a two-day virtual visit to India. The visit will have a key focus on fintech and gender diversity in finance - two very important themes which the City is keen to work with India on - although sustainable finance will once again be towards the top of his agenda, and it will be a fantastic opportunity to discuss the outcomes of both the EFD and the Green Horizon Summit.
With less than twelve months to go until COP26, it is clear that the UK and India are both close allies in the fight to green the global financial system and committed to creating the joint prosperity that a green post-pandemic recovery can provide. I look forward to our two countries strengthening their ties in financial services as that process gains momentum.