Mark Carney

The new Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney, former Bank of England governor and now UN special envoy on climate action and finance, brings together leading net-zero initiatives from across the financial system to accelerate the transition to net-zero emissions by 2050 at the latest.

Members include major asset owners and managers as well as banks with the power to mobilize trillions of dollars behind the transition to net zero. By working together, alliance members can catalyse strategic and technical coordination on steps firms need to take to align with a net-zero future.

All members will set science-aligned interim and long-term goals to reach net zero no later than 2050 in line with the criteria of the UN Race to Zero campaign. Member-determined short-term targets and action plans will supplement these goals.

Existing and new net zero finance initiatives will be part of the Alliance. They comprise the Net Zero Asset Managers Initiative, the UN-convened Net-Zero Asset Owner Alliance and the newly launched Net-Zero Banking Alliance. The last links 43 of the world’s leading banks, and is hosted by the United Nations Environment Programme Finance Initiative and co-launched by the Financial Services Taskforce of the Prince of Wales’ Sustainable Markets Initiative.

Prime minister Boris Johnson said: “Uniting the world’s banks and financial institutions behind the global transition to net zero is crucial to unlocking the finance we need to get there – from backing pioneering firms and new technologies to building resilient economies around the world.

“The Glasgow Financial Alliance for Net Zero will lead this charge ahead of COP26 to scale-up our ambition, accelerate our shift and help us to build back greener together.”

John Kerry, the US special presidential envoy for climate, said: “The largest financial players in the world recognize energy transition represents a vast commercial opportunity as well as a planetary imperative.

“As countries around the world move to decarbonise, the large sums these institutions are dedicating to climate finance also reflect a growing understanding of how critical a low-carbon global economy is to their business models.

“Ultimately, their commitment of capital and assets, as well as adherence to high standards and reporting, will accelerate the transition to this new economy, create a massive number of new jobs, and increase our collective ability to tackle the climate crisis.”

Mr Carney said: “This is the breakthrough in mainstreaming climate finance the world needs. I welcome the leadership of the Financial Services Task Force and other global banks for their new commitments to net zero and for joining forces with GFANZ, the gold standard for net zero commitments in the financial sector.

“Most fundamentally, GFANZ will act as the strategic forum to ensure the financial system works together to broaden, deepen, and accelerate the transition to a net zero economy.”

The new alliance has been welcomed by businesses. Rain Newton-Smith, chief economist for the CBI, said: “Business is upping its game at this critical moment, with a major increase in sustainable finance and new plans to scale the flow of capital to emerging economies.

“The establishment of the Sustainability Standards Board, as well as the Chancellor’s announcement for firms to publish net zero transition plans, are steps in the right direction.

“These need to be followed up with further action from policy makers to develop globally consistent climate and sustainability disclosure standards.”