City Minister and Economic Secretary to the Treasury John Glen, at the July 2018 Green Finance Summit in London, talked about his support for green finance.He said that he sees the idea as responsible capitalism, and added:
“My vision for the next 12 months and beyond is an explosion of the momentum to the point where ‘green finance’ becomes simply – ‘finance’.”
He cited the emerging green mortgage market as an example of beneficial green finance. Green commercial mortgages and green residential mortgages are provided for energy efficient homes and for developers building sustainable housing projects. Some lenders provide green mortgages at lower interest rate for energy efficient homes.
John Glen confirmed that the Green Finance Institute will be formed, which will promote UK green finance. The institute will enable government and industry to co-operate on environmentally minded projects.
Green finance is part of the government plans to reduce carbon emissions. Glen said that he wanted to see a change in mindset so that green finance is seen as a long-term strategy. He said:
“Executed well, green finance will not only help achieve our climate targets but support long term economic resilience and ensure the continued vitality and relevance of financial services.”
At the beginning of 2018, the Green Finance Task Force announced recommendations including strategies to grow the green mortgage market. Green organisations welcomed Glen’s speech, but they hope that this will be quickly followed by the implementation of the Green Task Force’s recommendations.