LONDON, Jan 23 (Reuters) - Alok Sharma has been selected by the UK government and the City of London Corporation to lead the Transition Finance Council, aiming to position Britain as a global center for financial services aiding the shift to a net zero economy.
Sharma, a former Conservative minister who held roles as Secretary of State for International Development in 2019 and Secretary of State for Business, Energy and Industrial Strategy in 2020, was instrumental in finalizing the COP26 Glasgow Climate Pact, which emphasized sustainable finance.
Finance minister Rachel Reeves stated, We aim to be at the forefront of sustainable finance, highlighting the potential job creation and growth opportunities by attracting investments into eco-friendly sectors.
The establishment of the Transition Finance Council, a joint initiative between the government and the governing body of London's financial district, stemmed from recommendations outlined in the October 2024 Transition Finance Market Review, detailing strategies for financial institutions to collaborate with businesses on reducing carbon footprints.
Describing Sharma as a relentless advocate for climate initiatives, Secretary of State for Energy Security and Net Zero Ed Miliband emphasized the economic potential of clean energy in the 21st century, underscoring the role of transition finance in boosting investments in these areas.
Amid global concerns over climate change, Sharma's appointment coincides with uncertain times, with shifts in U.S. policies potentially impacting international efforts.
Additionally, Irem Yerdelen, designated Lead Member for Sustainable Finance, has been appointed deputy chair of the Transition Finance Council.