Kate Forbes pledges Scotland will become 'world leader in green finance'

The Deputy First Minister made the vow as a new report set out a plan to turn the nation into a powerhouse for ethical and green investment.

Deputy First Minister Kate Forbes has vowed that Scotland will become a world leader in green finance and investment. Forbes pledged to act as a report was published setting out what she described as a "decisive action plan" to make the nation a "natural home for green and sustainable finance" across the world.

The research made 31 recommendations on how the public and private sectors can come together to supercharge green investments and help tackle climate change. David Pitt-Watson, chairman of the Scottish Taskforce for Green and Sustainable Financial Services which produced the report, described it as "a strategy for Scottish finance to play its proper role in addressing the climate challenge".

It includes a plan to ensure Edinburgh and Glasgow improves their global green finance rankings. The report 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 other financial institutions and green investors to come here.

Work is also needed to improve the rankings of Scotland's two biggest cities in the Global Green Finance Index - which rates the green finance offerings in 96 major cities across the world. The taskforce calls for work to upskill and reskill those already working in financial services in Scotland. To ensure the recommendations are achieved, it further suggests the Holyrood government and the financial services sector should set up a body to co-ordinate work towards them.

Forbes said: “This report is a decisive action plan as we progress towards making Scotland the natural home for green and sustainable finance. The financial services sector is key to delivering the benefits of the transition to net zero and we will use this route map 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, the SNP chief added that the work will complement the government's new Green Industrial Strategy, and other action being taken by ministers. We told last week how the Green Industrial Strategy had been widely panned as "detail-light" and lacking ambition.

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Pitt-Watson said: "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."

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