London Climate Action Week (LCAW) can appear daunting, with over 1,300 events taking place throughout the city and more than 100,000 attendees. Once you get into the rhythm, though, the triple-booked calendars start to make sense.

As financial policy advocates, the week is important because it brings together industry decision-makers from around the world (sector representatives came from as far as the US, Brazil, Australia and Japan) alongside politicians for important discussions on climate financial risk and opportunities to invest in the energy transition.

During the week, the Sustainability team and I attended, spoke at, and co-hosted a range of events with key stakeholders – from members to government ministers – that address our key advocacy areas. We observed several themes of discussion emerging around the importance of adaptation and climate resilience, the growing case for electrification and the consensus that the UK’s low-carbon economy has never been in a better position for investment.

It has never been a better time to invest in the low-carbon economy

While consensus on climate policy is fracturing among UK political parties, we heard a clear message from members, partners, and Ministers that there has never been a better time to invest in the UK’s low-carbon economy. Speaking at our business reception – co-sponsored by the Renewable Energy Association and others – Energy Secretary Ed Miliband highlighted the enormous growth of low-carbon energy, with the government announcing that it has secured £100 bn of clean energy investment since mid-2024. The Confederation of British Industry reported that the UK’s net zero economy now generates around £105bn in Gross Value Added and supports 1.1m jobs in the UK.

The heatwave brought adaptation and resilience front and centre

LCAW took place during a record-breaking heatwave that saw previous temperature records for June tumble. The heatwave not only brought to public attention the impact of the climate crisis but highlighted how poorly prepared UK infrastructure and housing are to deal with extreme heat. The recent Well Adapted UK report from the Climate Change Committee, for example, estimated the need for an additional £11 billion of investment per annum to deal with the impact of climate change on homes.

UK Finance has been vocal on the impact of climate risk on homes — for example in our participation in the FloodReady Review and follow-up advocacy — and is an active participant on the FCA/Bank of England-sponsored Climate Financial Risk Forum.

The case for electrification continues to improve

There was strong agreement across government representatives and many industry leaders that the case for electrification continues to improve, driven by falling technology prices and the war in the Middle East – which has yet again highlighted the UK’s exposure to volatile oil and gas prices. Lord Deben, former Conservative Environment Secretary and Chair of the CCC, also argued that the shift to renewables, nuclear and other low-carbon technologies is vital for UK energy security and sovereignty.

While the electrification argument is becoming more attractive, consumers still face barriers to adopting low-carbon technologies like heat pumps. One example of this is the higher price of electricity relative to gas for UK consumers, which is largely because of additional costs (such as green levies) paid for via electricity bills. In our Greening Homes, Creating Growth report, we called for electricity and gas prices to be rebalanced to actively incentivise consumers to upgrade their homes.

UK Finance is proud to be a member of the Green Home Finance Strategic Partnership, a collaboration between government, lenders, energy providers, and consumer groups which aims to help scale the green home finance market and support households more affordably finance low-carbon technologies.

We will continue work arising across these themes in the months ahead – and welcome participation from all UK Finance members in the relevant working groups.