Green Finance Strategy - DLA Piper responds to Call for Evidence

The UK government issued a Call for Evidence in May 2022 to support its update of the Green Finance Strategy. The UK government published its first Green Finance Strategy in 2019, however, much has changed in the years following the first publication. This Call for Evidence is an opportunity for stakeholders to share their views to support the development on a strategy update to better ensure that the financial services industry is supporting the UK’s energy security, climate and environmental objectives.

As trusted legal advisor to a diverse range of some of the largest organisations across the world, DLA Piper has an unparalleled insight into the role that businesses and their stakeholders play in promoting SESG change across a variety of sectors and industries. In addition, we consider that lawyers and other professional service providers have a crucial role to play in helping businesses and industry to analyse current and future trends in the regulatory environmental, identify and mitigate ESG-related risks and provide advice on meaningful and impactful transitions.

We have prepared a robust response to the Government’s Call for Evidence. The response is based on our experience advising clients across a wide range of sectors (including the financial services sector), as well as our experience as a business operating in the professional services sector.

In summary, the high-level key themes that we consider to be crucial elements of the refreshed Green Finance Strategy are:

1. A robust and clear real economy, sector-wide framework to support the transition to net zero;
2. Internationally aligned regulatory policy and development of frameworks and standards in a manner supporting global coherence with the UK leading by example;
3. Increased support and guidance for all businesses but, in particular, focusing on the needs of SMEs and retail customers. This will assist with data gathering, understanding and awareness and to help drive the “demand-side” for green finance products;
4. Encouraging and instilling confidence in the real economy for green and transition activities by using committed policies which are consistently pursued, whilst also supporting finance and investment into innovation and technological developments essential to the transition;
5. Developing a robust transition finance framework against which relevant financial products can be developed, increasing awareness and understanding of the importance of transition finance and what sustainable transition means, and supporting transition activities throughout the economy.

If you would like to discuss this topic further, please reach out to one of our experts.