The report from Guernsey Finance and Baringa Partners, titled “Private finance and its role in supporting the transition to net zero”, looked to the 2040s for the path that ESG investing may follow.
Guernsey Finance argued that there has so far been less attention paid to the role that private finance must play in the transition to net zero.
The report estimated that in the Guernsey investment sector alone, the total value of ESG funds could grow from £4.5bn at the end of 2021 to £56bn in 2040.
Key opportunities for the rest of the decade that were identified include building our nuclear capacity, investing in renewables in emerging markets and electrification.
In the 2030s, green hydrogen, low carbon fuel for aviation, and decommission of fossil fuel plants were all seen as important opportunities.
‘Translating strategy into action’ was a core part of the report, working with organisations such as the Net Zero Investment Framework, the Task force for Climate Related Disclosures, the Carbon Disclosure Project and many other financial bodies.
Stephanie Glover, head of sustainable finance at We Are Guernsey, said: “The opportunity to utilise financial services in driving the transition to net zero, especially in such a way that is as fair and inclusive as possible, is enormous. This report provides practical guidance that organisations can take to embark upon that journey if they have not already begun.
“The challenges are serious but the solutions are there, and Guernsey, as a force for global good, has a fundamental role to play in securing a net zero future.”
Rupert Pleasant, chief executive at We Are Guernsey, added: “The conversation is very much focused on achieving net zero, and this report covers the actions that organisations can take in order to embark on that journey and beyond. Equally important is making sure that the transition is just.
“This report provides a roadmap to net zero and shows that a joined up approach is needed. Guernsey as an international finance centre can support those changes across the whole of the finance industry.”