As world leaders gather in Brazil for COP30, London’s financial sector urges the UK Government to align public finance and policy to unlock billions in private investment for net zero – cementing the UK’s position as the global standard-bearer for credible, investable transition finance, says Chris Hayward
As world leaders gather in Brazil for COP30, the debate will once again focus on how we finance the global transition to net zero. The challenge is immense, but so too is the opportunity. And the UK has a clear window to lead.
In the Square Mile, we see every day that capital is ready to move. Investors, lenders and insurers want to support the transformation of our economy, from high-carbon to low-carbon, from legacy to innovation. But they need clarity, consistency, and confidence that their money will make a measurable difference.
That’s why this month’s publication of the updated Transition Finance Guidelines by the Transition Finance Council is so important. These guidelines, now entering their final consultation for international consultation ahead of March 2026, are designed to bring coherence to how markets define and deliver credible transition finance. They spell out what good looks like: real, science-based decarbonisation plans; clear milestones; and transparency on outcomes
For London and the UK, this is a major opportunity. The City of London Corporation was proud to host the Transition Finance Market Review earlier this year, commissioned by HM Treasury and the Department for Energy Security and Net Zero. That review made one point crystal clear: if we get the frameworks right, the UK can mobilise tens of billions in additional private investment every year to power the transition.
Act now
But to unlock that scale, government must act now. In the upcoming Autumn Budget, the City Corporation is calling for stronger alignment of the UK’s public finance institutions, behind a single, strategic goal: building investable transition markets and de-risking private capital.
That means using public capital smartly, not to crowd out private investment, but to catalyse it. Public guarantees, first-loss tranches and co-investment funds can give investors the confidence to back new technologies and business models that will decarbonise heavy industry, transport, buildings and construction.
At the same time, the government should use COP30 to champion the Transition Finance Council’s Guidelines on the world stage. The UK has led the way before, in green finance, through the launch of the first sovereign green bond; in climate disclosure, by mandating TCFD reporting; and in transition planning, through the Transition Plan Taskforce. Now is the moment to extend that leadership into transition finance, ensuring the UK sets the global standard for credible, investable transition activity.
London’s financial and professional services sector is already building this future. Banks are structuring sustainability-linked loans that reward decarbonisation. Asset managers are designing transition funds that channel capital to high-emitting sectors with credible plans. Lawyers, accountants and data specialists are creating the assurance and verification systems that underpin trust.
The foundations are in place. What’s needed now is coordination, across government, regulators and the market, to turn ambition into action. The City Corporation stands ready to help deliver that, working with partners across the UK and globally.
Because transition finance is not just about climate, it’s about growth. It’s about new industries, new technologies, and new jobs in every region of the country. By positioning the UK as the home of credible transition finance, we can attract global capital, strengthen our financial services sector, and drive sustainable prosperity for decades to come. COP30 offers a moment of clarity. As other economies look for leadership, the UK can show how finance, policy and innovation combine to deliver net zero in practice. The world is watching, and London is ready to lead.
Chris Hayward is policy chairman of the City of London Corporation