Private sector must be forced to make green investment

Shadow Chancellor John McDonnell is expected to attempt to harden Labour’s stance on the environment by announcing a review of the finance sector’s role in climate change in a speech in the City.

As reported by the Observer, McDonnell will commit Labour to using Treasury to ‘force’ the private sector into investing in ‘green’ projects, and preventing funding from being used in areas where it contributes to climate warming – although there are currently no details as to how these definitions might be used.

Although the EU has recently launched its own definitions to avoid ‘greenwash’ it is likely than any criteria from McDonnell will be far more stringent, especially given that Extinction Rebellion, the environmental activist group, has been invited to contribute.

Cynics might point to the fact that the Europe wide success of green parties has influenced all parties into attempting to chase the climate vote, and Labour is preparing for a possible Election. McDonnell is also gunning for more regulation and oversight of the banking system.

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