A report by Oxford University’s Environmental Change Institute, Smith School of Enterprise and the Environment, and the Green Finance Institute (GFI) says significant shortcomings in UK policy are impeding the flow of finance needed to manage the impacts of extreme heat, floods, storms, and droughts. The study, which includes 25 recommendations from adaptation experts, calls upon the government to address vulnerabilities and enhance resilience to climate-related effects. As the government prepares to publish its next five-year plan for managing climate impacts this summer, the report emphasises the urgency of mobilising necessary investments to enable the UK to adapt and protect its people, property, and prosperity. Last summer’s unprecedented heatwave resulted in over 3,000 excess deaths, and projections suggest that such fatalities could surpass 7,000 annually by 2050. Further, London’s vulnerability to flash flooding in 2021, which impacted critical services and infrastructure, further underscores the need for a robust plan. Dr. Nicola Ranger, lead author of the report and leader of the Resilience and International Development Programme at Oxford University, warned that the UK is ill-prepared for climate change, thereby endangering lives, livelihoods, assets, and well-being. She noted the inadequate consideration of physical climate risks in financial decision-making, leading to investments that may inadvertently push the country in the wrong direction while exposing the financial sector to systemic financial risks. Ranger stressed that the gaps necessitate action not only from financial institutions but also regulators and the government, stating that “Government action is not matching the urgency and risk”.
