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Euro Finance Week
17/11/2009
Financial innovation can play a key role in combating climate challenge through funding the creation of major green infrastructure projects that deliver real wealth - not asset inflation - First Minister Alex Salmond said today.
In a keynote address at Euro Finance Week, the First Minister outlined how the industry could support global climate change goals through harnessing investment opportunities of developing economies to deliver green infrastructure.
He brought forward the example of a European electricity supergrid, which is a new asset that could be financed by surplus economies and which would create real wealth, not virtual wealth or asset inflation.
The First Minister highlighted the industry's potential to develop a low carbon economy, with the potential to provide thousands of green jobs and support economic recovery.
In an address to Europe's biggest financial services conference, the First Minister said Scotland has an outstanding record in financial innovation and continues to attract some of the biggest names in international finance including Tesco Bank, Virgin Money, Esure, BNP Paribas and Odyssey.
First Minister Alex Salmond said:
"Financial services are a big part of Scotland's future with the potential for significant future investment and thousands of new jobs.
"And globally, there is the opportunity to harness investment from developing economies in Asia and elsewhere, to encourage sustainable economic growth through infrastructure creation, not asset inflation.
"Financial innovation has a significant role to play in the development of a low carbon economy that encourages innovation, creates business opportunities, provides thousands of green jobs and helps us achieve global climate change goals.
"The integration of the newly emerging economies such as China into the world economy presents new opportunities to work together to the benefit of our economies and our planet.
"New financial instruments were developed to exploit North Sea oil and gas, and these innovative approaches could be utilised now to make a significant difference to climate change goals - the kind of goals that I hope will be agreed at the Copenhagen summit.
"The EU Commission is taking forward a North Sea Grid Study and initial investments are being made as part of Europe's Economic Recovery Plan, including in a groundbreaking transmission hub off the north coast of Scotland.
"European institutions have a key role in supporting such large scale infrastructural development and the financial industry has the capacity to deliver the financial instruments that allow us to harness these resources.
"Scotland's reputation for financial services talent and infrastructure continues to attract some of the biggest names in finance, including Tesco Bank, Virgin Money, Esure, BNP Paribas and Odyssey.
"Following the events of the past year or so, there is a clear need to rebalance the global financial architecture and we can do so in a way that adds real strength and depth to our economies - and in a way that ensures our sustainable future."
Adrian Gillespie, Director of Energy and Low Carbon Technologies, Scottish Enterprise, said:
"Our investment in EMEC demonstrates our continued focus on the development of renewable energy. Scotland is well-placed to take advantage of the opportunities in this area, with EMEC at the forefront of harnessing marine and tidal power. The ongoing development of the energy sector is key to Scotland's economic success and we are committed to working with our partners to harness Scotland's outstanding energy sources."
The First Minister led a Scottish delegation to Euro Finance Week in Frankfurt on Monday working to strengthen economic links with Europe and reinforce the message - to leading global financial figures - that Scotland offers significant competitive advantages for business.
Scotland's Climate Change Act, passed earlier this year, is the most ambitious in the industrialised world, committing Scotland to cut greenhouse gas emissions by 42 per cent from 1990 levels by 2020 and by 80 per cent by 2050.
The Scottish Government is offering one of the greatest innovation prizes in history - the £10 million Saltire Prize - around €11 million - for the team that creates the best, commercially viable wave or tidal energy project, using only sea power.