Focus on Scotland being a global green finance hub

A new report from the Scottish Taskforce for Green and Sustainable Financial Services makes 31 recommendations on how the public and private sectors can encourage and fund green investments and tackle the climate emergency.

It stresses the Scottish finance industry is particularly well placed to reap “profound benefits” from becoming a global hub and identifies four areas for action – policy, promotion, investment and skills.

Suggested initiatives include:

• work to ensure Edinburgh and Glasgow sustain and improve their rankings in the Global Green Finance Index

• new initiatives to attract more financial institutions to build their sustainable businesses in Scotland

• collaboration across sectors and academia to improve the skills of Scotland's workforce in sustainable finance

Recognising the scale of the transition needed at home and abroad, the Scottish Government identified that there would be continued and growing demand for green financial products and services from established global financial hubs like Scotland. 

Deputy First Minister Kate Forbes, who will today address the Ethical Finance Global Summit in Edinburgh, welcomed the findings and wants to collaborate with financial institutions to ensure Scotland becomes a global centre for green and sustainable finance and investment. 

Ms 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.

“This report, complementing our Green Industrial Strategy and the action we are taking such as developing a series of investment opportunities and launching an online investment portal in 2025, will make Scotland more attractive for investment."

Taskforce Chair David 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. So 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. And 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.”

Chief Executive of Scottish Financial Enterprise (SFE) 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.”

Background

The Scottish Taskforce for Green and Sustainable Financial Services report.

The Scottish Government’s initial response.

The Taskforce was established by the Scottish Government in 2022 following the success of COP 26.

Initiated by the Scottish Government and the Global Ethical Finance Initiative (secretariat) with support from Scottish Financial Enterprise (industry partner), the Scottish Taskforce for Green and Sustainable Financial Services was active from February 2022 until May 2024. The Taskforce sought to coordinate and enhance Scotland’s sustainable finance cluster and develop its position as a leading global centre of excellence for green and sustainable finance.

With active participation from 24 financial institutions and financial services stakeholders, during its 2+ year lifespan, the Taskforce hosted 8 formal meetings, delivered 2 presentations to the First Minister’s Financial Services Growth and Development Board, facilitated over 10 workshops and conducted 50-plus private meetings.