The UK Government and City of London Corporation today (23 January) announced the appointment of the Rt Hon Lord Alok Sharma KCMG as Chair of the Transition Finance Council and Irem Yerdelen, Lead Member for Sustainable Finance, as Deputy Chair.

Co-launched by the UK Government and the City of London Corporation, the Transition Finance Council aims to leverage the UK’s existing strengths to become the best market in the world to raise and deploy high-integrity transition finance – the financial products and services that facilitate an economy-wide transition to net zero.

The Transition Finance Council was one of the key recommendations of the Transition Finance Market Review, published in October 2024, and will include representation from the financial and professional services sectors, real economy, government, regulators, standard setters, and civil society.

The Council will play a crucial role in positioning the UK as the global leader in transition finance and will have three key functions:

1.     Driving forward implementation of the Transition Finance Market Review’s recommendations.

2.     Supporting transition finance capacity building and engagement with UK and international stakeholders.

3.     Convening working groups to advance priority areas aligned with the Council’s objectives.

The Rt Hon Rachel Reeves, Chancellor of the Exchequer, said: 

“Growth is the number one mission of this government, and we are committed to prioritising sustainable economic growth that will accelerate the UK’s transition to net zero. 

“We want to lead the world in sustainable finance by making the UK a global hub for green and transition finance, promoting investment flows into green industries to create jobs and support the global transition to a sustainable future. 

“At Mansion House, I co-launched the Transition Finance Council, which will play a pivotal in driving this ambition forward and I look forward to working with the newly appointed Chair Lord Alok Sharma who brings a wealth of experience to the role.” 

Lord Sharma served in a range of UK government ministerial roles prior his appointment as Secretary of State for International Development in 2019 and Secretary of State for Business, Energy and Industrial Strategy in 2020.  He also served from 2020 to 2022 as President Designate, and subsequently as President, of COP26 the UN Climate Conference held in Glasgow.  In this role, he led the UK’s work in bringing together the world to tackle climate change and getting almost 200 countries to sign up to the historic Glasgow Climate Pact which included commitments on increasing finance.

Councillor Irem Yerdelen served as the member of TFMR Expert Group and provides ongoing leadership in City Corporation’s ambitious sustainable finance goals. She is a market leader in advising organisations to operationalise sustainability imperatives and accelerate the transition to a low carbon economy.

The Rt Hon Ed Miliband, Secretary of State for Energy Security and Net Zero, said:

“Clean energy is the economic and industrial opportunity of the 21st century, and transition finance can help to accelerate investment into these sectors. The Transition Finance Council will play an important role in mobilising this finance to help deliver our clean energy superpower mission and meet our international climate goals. 

“Lord Alok Sharma has been a tireless advocate for climate action, and I look forward to working with him in his new role as Chair.”

This announcement follows the practical recommendation of Transition Finance Market Review (TFMR) for scaling a high-integrity transition finance market in support of UK and global net zero ambitions, with a focus on the decarbonisation of high-emitting sectors. This included recommendations across three key pillars:

• Establishing clarity and credibility: Defining the scope of transition finance, and assurance as to how credibility will be determined.
• Scaling finance for transition activities: Developing bridging solutions to finance the activities needed for companies to deliver on credible transition strategies.
• Scaling finance for transitioning entities: Evolving transition finance and stewardship approaches to ensure the flow of capital to entities with a credible transition strategy.

Chris Hayward, Policy Chairman of the City of London Corporation, said:

“Lord Alok Sharma has a solid record of delivering tangible climate action results. Which is why we’re delighted for him to be chairing the Transition Finance Council.

“Working with my excellent colleague Irem Yerdelen I have no doubt that they will together drive forward the Council’s aims of utilising the UK’s existing strengths in financial services to make it the best place in the world to raise private capital to fund the global transition in infrastructure, markets and technology to support a net-zero future.”

The Rt Hon Lord Alok Sharma KCMG, Chair of the Transition Finance Council, said:

“To support growth and meet national and corporate climate goals, it is absolutely vital to grow the transition finance market. I look forward to working with colleagues on the Transition Finance Council to help develop the UK into the preeminent global hub for transition finance.”

Councillor Irem Yerdelen,  Deputy Chair of the Transition Finance Council, said:

“I am excited by the Government’s launch of the Transition Finance Council today and I look forward to working with Lord Sharma on fulfilling the Council’s mandate of advancing priority areas, supporting capacity building and action across the market for transition finance.

Ensuring easy access to financial products and services are vital to facilitating an economy-wide transition to net zero, particularly when it comes to the decarbonisation of high-emitting sectors. As part of our role we’ll be working with wider partners and stakeholders to implement a credible plan to scale up solutions.”

Emma Reynolds, Economic Secretary to the Treasury, said:

“This is an important appointment that will support the work of the Council’s role in supporting our growth mission, helping to set a clear path for what needs to be done to mobilise capital into key net-zero sectors through the Transition Finance Market Review.

 “I look forward to working closely with Lord Sharma to help make the UK a global hub for transition finance. Together, we will maintain momentum and lead the charge towards a sustainable future.” 

ENDS

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk.