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If there is one thing that has emerged from climate summit – COP26 – and the UK government’s net-zero strategy is a sense of urgency for us to transition quickly in order to achieve agreed targets for carbon, sustainability and the environment. There is also a recognition that for us to come remotely close to achieving set goals, there is a pressing need for heavy investment in the development and deployment of sustainable technology.
The question is: where will the finance come from and how quickly can those planning sustainability projects and initiatives access funds?
The third objective of COP26 was to mobilise finance in order to achieve the first two objectives of: securing global net-zero by 2050 and keeping 1.5°C in focus; and adapting to protect communities and natural habitats. What was announced at the end of the first week in response to this challenge was a significant and crucial pledge from the alliance of financial institutions called the Glasgow Financial Alliance for Net Zero, or GFANZ, which was formed in April this year.
At COP26, GFANZ confirmed that the 450 insurers, asset managers and banks from 45 countries that make up the coalition had pledged a staggering $130 trillion of private capital to fund the transition to renewable energy. But while the finance is certainly a welcome commitment to achieving decarbonisation, it’s still unclear who will be eligible to apply for funding and how they apply.
One concern is how the finance will be regulated. Greenwashing is a big issue and GFANZ funding will need to be somehow regulated to ensure that the projects it finances are genuine, net-zero projects that will actively contribute to reducing carbon and emissions.
Greenwashing is a pervasive and damaging problem with some of the largest companies from industries ranging from fashion to food, and oil and gas to the air industry have been found wanting in their approach to establishing green credentials. A company saying it’s ‘green’ and actually demonstrating how it is are poles apart and must be governed more closely.
The projects funded by GFANZ will need to be closely scrutinised to avoid the escalation of greenwashing. Watch this space.
Like the rest of the world, the UK has hugely under-invested in the technology that will allow us to enjoy a carbon-free economy by 2050. A short-term view and lack of foresight now means we’re held to ransom with our energy supply due to limited capacity and a challenge with renewables. We need to urgently address security of supply because – at present and as an example – we’re heavily reliant on gas supply from other countries, which has the potential to leave us vulnerable. The outcomes from COP26 are going to lay a massive obligation on UK businesses to change and to achieve that change, will require significant finance from private investment and government capital investment.
We’ve been helping our customers realise their sustainability goals for quite some time. Our solutions include some of the most cutting edge technology to improve energy efficiency and consumption with the ultimate aim of reducing both cost and carbon footprint. Electric vehicle charging, battery storage, heat meters and solar PV are just some of the sustainable technologies we help our clients invest in to decarbonise, reduce waste and manage risks associated with energy supply.
In response to the outcomes of COP26 and to support UK companies with their energy reduction and usage accountability, we’re delighted to share that we’ll be launching a new, zero-cash asset finance solution in the new year. We’ll be sharing more over the next couple of months, but as a quick overview…
Asset finance the Inteb way – We’ll provide the investment you need to finance new energy assets, plant and equipment using an operating lease to finance 100% of the upfront cost. You get full use of the asset without having to find the cash to finance it, which makes reaching your sustainability goals achievable and affordable. Assets include (but are not limited to) new heat, gas, electricity and ware AMR metering and sub-metering, building energy management systems, and new boiler, heat and power distribution plants.
The official launch for this new service is in January, but if you want to find out now how it can benefit your business, please do get in touch.
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Let’s get the conversation started – call us now on 0151 601 3476
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