COP 30 is an opportunity for the UK to lead the world in transition funding

As world leaders gather in Brazil for COP30, London’s financial sector is urging the UK Government to align public finance and policy to unlock billions in private investment towards net zero – strengthening 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 challenges are great, but so are the opportunities. And England had a clear chance to take the lead.

In the Square Mile, we see every day the capital is ready to move. Investors, lenders and insurance companies 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 bring measurable change.

That is why the publication of updated Transition Financing Guidelines by the Transition Financing Council this month is so important. These guidelines, which are now entering final consultation for international consultations ahead of March 2026, are designed to provide coherence to the way markets define and deliver credible transition finance. The documents say the good things: a real, science-based decarbonization plan; clear achievements; and transparency regarding results

For London and the UK, this is a huge opportunity. The City of London Corporation is proud to host Transition Finance Market Overview earlier this year, commissioned by HM Treasury and the Department for Energy Security and Net Zero. The review makes one thing clear: if we put the right framework in place, the UK can mobilize tens of billions in additional private investment every year to drive the transition.

Act now

But to reach that scale, the government must act now. In the upcoming Autumn Budget, the City Corporation is calling for stronger alignment of the UK’s public financial institutions, towards a single strategic aim: building an investable transition market and de-risking private capital.

This means using public capital intelligently, not to discourage private investment, but to catalyze it. Public guarantees, first loss tranches, and co-investment funds can give investors the confidence to support new technologies and business models that will decarbonize heavy industry, transportation, building, and construction.

At the same time, governments should use COP30 to champion the Transitional Finance Council Guidelines at the world level. The UK has led the way before, in the area of ​​green finance, with the launch of its first government green bond; in climate change disclosure, by requiring TCFD reporting; and in transition planning, through the Transition Planning Task Force. Now is the time to extend that leadership into transition finance, ensuring the UK sets the global standard for credible and investable transition activity.

London’s financial and professional services sectors are already building this future. Banks are structuring sustainability-linked loans that provide benefits for decarbonization. Asset managers are designing transition funds that channel capital into high-emissions sectors with credible plans. Lawyers, accountants, and data specialists create assurance and verification systems that support trust.

The foundation is already there. What is needed now is coordination across governments, regulators and markets to turn ambition into action. City Corporation is ready to help make this happen, working with partners across the UK and globally.

Because transition funding is not just about climate, but also growth. It’s about new industries, new technologies and new jobs in every region of the country. By positioning the UK as a credible center for transition funding, we can attract global capital, strengthen the financial services sector and drive sustainable prosperity for decades to come. COP30 offered a moment of clarity. As other countries 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 the City of London Corporation’s policy chair