Forbes sets goal for Scotland to be world leader in green finance

Deputy First Minister Kate Forbes is to work with financial institutions in a bid to ensure Scotland becomes a world leader in green finance and investment.

Ms Forbes pledged to act as a report was published setting out what she described as a “decisive action plan” to make the country the “natural home for green and sustainable finance”.

The Scottish Taskforce for Green and Sustainable Financial Services has made 31 recommendations on how the public and private sectors can encourage and fund green investments and help to tackle the climate emergency.

Taskforce chairman David Pitt-Watson said the report is “a strategy for Scottish finance to play its proper role in addressing the climate challenge”.

It calls on the Scottish Government to develop a “robust national framework” for retaining the country’s existing base of financial services, while at the same time attracting further financial institutions and senior roles and investment in green and sustainable finance.

Work is also needed to ensure Edinburgh and Glasgow can improve their rankings in the Global Green Finance Index – which rates the green finance offerings in 96 major cities across the world.

The taskforce also calls for work to upskill and reskill those already working in financial services in Scotland, to help underpin the growth and success of the nee sector.

To ensure the recommendations are achieved, it suggests the Government and the financial services sector should set up a body to co-ordinate work towards them.

Ms Forbes said: “The financial services sector is key to delivering the benefits of the transition to net zero and we will use this routemap to work together and ensure that Scotland – one of the world’s oldest financial centres – is able to maximise the opportunities ahead of us.”

Speaking as the Ethical Finance Global summit took place in Edinburgh, she added that the work will complement the Government’s existing green industrial strategy, and other action being taken by ministers.

Mr Pitt-Watson added: “Climate may be the greatest challenge facing humankind. Addressing it will require a huge investment and the services of the finance industry.

“Finance is a jewel in Scotland’s industrial crown. Not only should there be many opportunities for green investment in Scotland, from wind to housing, there is also a huge opportunity for its financial services industry to serve the world.

“The taskforce has already stimulated a considerable amount of action. There is so much more to do.

“This report is a strategy for Scottish finance to play its proper role in addressing the climate challenge.”

Scottish Financial Enterprise (SFE) chief executive Sandy Begbie said: “The work of the taskforce is a great example of collaboration between government and industry to enhance Scotland’s reputation as a global green and sustainable finance centre.

“There are significant recommendations in the report and I am pleased that today marks the start of a formal partnership between the Global Ethical Finance Initiative (GEFI) and SFE to take them forward.

“GEFI will leverage its considerable global footprint while SFE will use its leadership position here in Scotland and our key relationships in London.”