Scotland can be ‘true global contender’ in green finance, says Kate Forbes

KATE Forbes has said Scotland can become a “true global contender” in the race to capture economic opportunities from growth in green financial services.

The Deputy First Minister has stressed the sector has potential to benefit from “enormous investment that will flow into net zero projects and assets”, as she insisted Scotland was one of the world’s oldest financial centres.

A taskforce report is set to be published and launched by Forbes on Wednesday which recommends actions including looking at new ways to attract more financial institutions to “build their sustainable and green businesses in Scotland”.

It also recommends collaboration across sectors and academia to support the upskilling of Scotland’s workforce in sustainable finance.

In the Scottish Government’s response to the taskforce’s report, Forbes says: “The recently published green industrial strategy has a clear overarching aim: to help Scotland realise the economic benefits of the global transition to net zero.

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“There are few areas of greater competitive advantage and potential than green and sustainable financial services. Set in this context, it is with particular pleasure and optimism that I welcome the report of Scotland’s taskforce for green and sustainable financial services.”

The Scottish Government and the Global Ethical Finance Initiative launched the taskforce in 2022 to examine questions, such as: “How could Scotland’s financial services industry leverage the enormous investment that will flow into net-zero projects and assets, both here and abroad, to build up a green financial services cluster?”

Forbes told The Herald: “We knew that Scotland could be a natural home for green and sustainable finance because the foundations are strong – in Scotland, large financial institutions are clustered alongside professional services firms, energy and technical experts, and specialist businesses across a range of disciplines.

(Image: Jane Barlow/PA)

“The world saw in Glasgow [in] 2021 that Scotland had both a progressive energy and climate-change policy at home, and the convening power to deliver real advances on climate finance on the global stage.”

Describing the final report of the taskforce as “impressive”, she declares that it “sets out a framework of recommendations that will help Scotland become a true global contender in the race to capture the economic opportunities that the growth in green and sustainable financial services presents”.

The report from the taskforce makes 31 recommendations on how the public and private sectors can work together to encourage and fund green investments.

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“The financial services sector is key to delivering the benefits of the just transition and we will use this route map to work together and ensure that Scotland – one of the world’s oldest financial centres – is able to maximise the opportunities ahead of us,” Forbes added.

David Pitt-Watson, chair of the Scottish taskforce for green and sustainable financial services, said there is a “huge opportunity” for Scotland’s financial services industry to “serve the world”.

He said: “Climate may be the greatest challenge facing humankind. Addressing it will require a huge investment and the services of the finance industry.

“Finance is a jewel in Scotland’s industrial crown. So not only should there be many opportunities for green investment in Scotland, from wind to housing, there is also a huge opportunity for its financial services industry to serve the world.”