London is no longer in first place for green finance quality, falling behind Amsterdam and Zurich after over two years in pole position, according to the Z/Yen index.

Within its 2020 Global Green Finance Index (GGFI) released to City AM, the think tank ranked 74 financial hubs across the globe for their public, private and non-profit investment in sustainable development projects. 

In the top two places for green finance depth and quality are Amsterdam and Zurich, highlighting their green finance markets and product quality.

However, London fell from first place in the quality index, but moved up from sixth place to fourth for green finance depth, behind Copenhagen.

Z/Yen said the UK capital’s loss as the world leader “might indicate that more weight is being given to green finance in leading financial centres”.
“Places where sustainability is a hallmark of public life and discourse have a marked advantage in green finance”, said Z/Yen executive chairman Michael Mainelli.
The financial sector in Western Europe continued to lead the rankings for its sustainability, infrastructure and human capital, occupying nine of the top 10 positions in depth and all 10 places in quality in the 2020 Global Green Finance Index.
Mainelli added: “This reflects the continuing work being undertaken by European financial institutions, central banks, regulators, and the European Union to embed sustainability in their regulatory work, including their economic support in response to the Covid-19 pandemic.”
Last year the UK introduced its Green Finance Strategy, within plans to bolster the country’s economic policy for balanced growth to stay in line with climate change commitments.
As a result, the government has made significant investments into the UK’s low carbon economy, within plans to reach net zero carbon emissions by 2050.
 Over the past three years, the amount raised in green bonds on the London Stock Exchange (LSE) has increased from £8bn in 2017 to £22.4bn in 2020.
Currently there are 22 green funds listed on the LSE, and over 100 green firms which generate a minimum of 20% of revenue from green economy industries. 
Last week, business secretary Alok Sharma stated: “By investing now, to reduce our emissions, build resilience, and adapt to climate change, we can create jobs and generate growth. And at the same time, we can protect the planet for future generations.”
“The international financial system is going to be integral to delivering a green recovery. Countries, public financial institutions, business, and civil society, we must all work together towards building back greener.”