The Labour Party is developing plans to “go after” banks and hedge funds “financing climate change”.
While the Conservatives have a legally binding target to achieve a zero carbon economy by 2050, shadow chancellor John McDonnell wants the goal reached by the 2030s using financial levers.
Mr McDonnell revealed his approach ahead of the publication of the Finance and Climate Change report, authored by a group including academics and experts as well as former head of the civil service, Bob Kerslake.
The report recommends banks and hedge funds “should be forced to publish the climate-related risks associated with their financial assets”.
Mr McDonnell said: “It’s clear there is a long way to go before the finance sector is pulling its weight to achieve the rapid changes our economy needs to meet our climate obligations.”
“Labour will take on board these findings and recommendations and bring forward our own proposals ahead of the General Election.”
The report will also recommend that the Bank of England change its monetary policy operations to “avoid carbon bias” and said larger banks should be penalised for involvement in environmentally unfriendly investments.
Labour leader Jeremy Corbyn this week attacked polluters from hedge funds and large companies.
The party also pledged that all new homes would be “zero carbon” within three years under Labour plans to tackle the housing and climate crises at the same time.
We need your help ...
The coronavirus pandemic is changing our world, fast. And we will do all we can to keep bringing you news and analysis throughout. But we are worried about maintaining enough income to pay our staff and minimal overheads.
Now, more than ever, we need a vibrant, independent media that holds the government to account and calls it out when it puts vested economic interests above human lives. We need a media that shows solidarity with the people most affected by the crisis – and one that can help to build a world based on collaboration and compassion.
We have been fighting against an establishment that is trying to shut us down. And like most independent media, we don’t have the deep pockets of investors to call on to bail us out.
Can you help by chipping in a few pounds each month?