The UK government and City of London Corporation have appointed Alok Sharma as chair of the newly launched Transition Finance Council, a key initiative aimed at making Britain a global hub for sustainable finance and facilitating the economy-wide transition to net zero.
Sharma, a former Conservative minister and pivotal figure in securing the COP26 Glasgow Climate Pact, brings extensive experience in climate diplomacy and sustainable development. The council, a recommendation from the 2024 Transition Finance Market Review, will explore how financial institutions can work with businesses to reduce carbon emissions and accelerate green investments.
“We want to lead the world in sustainable finance,” said Finance Minister Rachel Reeves, adding that investment in green industries would create jobs and drive economic growth, which she described as the government’s “number one mission.”
Ed Miliband, Secretary of State for Energy Security and Net Zero, praised Sharma’s appointment, calling him a “tireless advocate for climate action.” He emphasised that “transition finance can help accelerate investment into clean energy sectors,” describing it as the economic opportunity of the 21st century.
The announcement comes amid growing global uncertainty in climate finance. In the United States, President Donald Trump is expected to dismantle key emissions-reduction policies, while several major Wall Street banks and asset managers have withdrawn from a UN-backed banking alliance under Republican pressure.
Sharma will be joined by Irem Yerdelen, who has been named deputy chair of the council. Yerdelen, a prominent advocate for sustainable finance, will work alongside Sharma to position the UK as a leader in climate finance innovation.
The Transition Finance Council represents a major step in the UK’s commitment to advancing net-zero goals through innovative financial products and solutions. Its efforts are expected to attract global attention and drive momentum in sustainable investment strategies.
