HM Treasury has announced that the UK has become a founding member of the ‘The International Platform on Sustainable Finance (IPSF)’ – promoting the development of ‘eco-sustainable’ financial systems.
Under the terms of the membership, signed off by Chancellor of the Exchequer Rishi Sunak, HM Treasury will cooperate with its counterparts in Argentina, Chile, Canada, China, India, Indonesia, Kenya, Morocco, Switzerland, Norway and the EU in establishing the IPSF’s ‘green finance goals’.
The formation of the IPSF is recognised as the first-time that national treasuries have cooperated towards developing environmentally sustainable financial systems at a domestic and international level to tackle the climate change crisis.
Of heightened importance, participating members will cooperate in incentivising private investment for climate and environmental objectives.
Further objectives will see members share knowledge on taxation policies and market practices to help domestic businesses achieve sustainable interests.
Chancellor Sunak, in signing the cooperation agreement, underlined the ‘critical role that the financial sector needs to play in reorienting private investment towards sustainable activities outlined as a principal goal of the 2016 Paris Agreement’.
The Treasury has underscored the UK’s commitment to leading international cooperation in all matters related to fighting climate change and developing a sustainable future.
In November the UK will host the ‘UN Climate Change Conference’ in Glasgow, welcoming all heads of states from the COP26.
The conference will review domestic and international progress on the sustainability directives and objectives of the 2000 Kyoto Protocol and 2016 Paris Agreement.