Initial UK investment and asset management community reactions to the introduction of the Climate Change Bill in the Queen’s Speech yesterday, appear positive. The hope for regulatory certainty to underpin low carbon and emission free infrastructure investment appears to be realised.

The Queen stated “My government will publish a bill on climate change as part of its policy to protect the environment, consistent with the need to secure long-term energy supplies.”

The legislation will be centred around “four pillars”:

• placing the target to cut CO2 emissions by 60% from 1990 levels by 2050 on to the statute books
• establishing an independent “Carbon Committee” to work with ministers to deliver reductions “over time and across the economy”
• creating new powers to ensure the 2050 target is achieved
• improving the way CO2 reductions are monitored and reported, including to Parliamentcertainty needed for investment in lower carbon and zero emission technology.

This proposal is not all good news for some of our non UK clients. Climate Risk expects to see additional capital flight from some markets including Australia as many investors seek early opportunities to capitalise on these new markets.  

Not surprisingly the Conservative party leader David Cameron welcomed the Bill along with many business and environment peak bodies