London has retained its top spot in the world’s ‘green finance quality centres’ list as Europe continues to lead the way on eco-friendly financial products, according to the latest Z/Yen index.

It says London came first on the list for ‘quality’ of green finance and sixth for ‘depth’ – Amsterdam is number one in the world when it comes to the depth of its green finance markets.

The report also suggests Western Europe continues to lead the world’s centres in green finance, taking nine of the top ten places in depth and the top 12 places in quality.

Michael Mainelli, Executive Chairman of Z/Yen, said:“Green finance, to date, has depended on public policy. Public policy, to date, has largely been driven by public awareness. This heavy dependence on public policy distinguishes green finance from ‘normal’ finance.

“The strength of centres in Western Europe in green finance reflects both the action taken by the European Union, governments, and regulatory authorities, as well as public demand for action on sustainability.”

Dr Rhian-Mari Thomas, Chief Executive of the Green Finance Institute, said:“Unlike previous economic trends or cycles, the inviolable nature of the physics of climate change means that whilst there remains some uncertainty about how exactly we embed science into our business, finance, regulatory and policy decision making, decarbonising our global economy is an imperative and is ultimately inevitable.

“Successfully reallocating capital towards the opportunities presented by this economic transformation requires an understanding of the technologies and the societal behaviours that are rapidly replacing existing systems.”