Weathering the Storm: The Impact of Climate Change on London's Economy
London’s status as a global city makes its economy increasingly vulnerable to climate change.
Not only do we face higher risk of flooding, drought and heatwaves at home, but we also ‘import’ risk through the insurance sector, overseas investments and our supply chains.
However we have found that the adaptation economy is strong and growing. And London is well placed to take advantage of further opportunities for growth in a sector in which it has internationally recognised strengths. The time is right for responsible investment in, and promotion of, the green economy as an alternative to coal and other fossil fuels. The London Assembly Economy Committee has investigated the impact of climate change on London’s economy in terms of risks and opportunities. During the investigation, the Committee held two public meetings with representatives for a number of organisations, including Lloyd’s of London, PwC, LSE and Siemens. Written submissions were also received from the Mayor of London, the Federation of Small Businesses and the City of London Corporation amongst others.
The report makes a number of recommendations, including:
The London Climate Change Partnership should map the major supply chain vulnerabilities of London’s economy.
The Mayor should commit to the principle of a transition away from investment in certain fossil fuels, namely coal and towards reinvestment in responsible funds.
The Mayor should launch an award for climate change adaptation to reward innovative initiatives by London businesses.
The Mayor should drive forward a resilient low carbon economy for London by promoting skills in this area and encourage innovation in the green economy.
Climate change adaptation should be integrated into the Mayor’s Economic Development Strategy, as currently it doesn’t feature.