Edinburgh has strengthened its position as a green financial centre, according to the latest Z/Yen Global Green Finance Index, a measure of international green financial centres.

While Edinburgh’s overall score was lower compared to last year it has risen one place in the rankings to 18^th, as centres across the board saw their scores dip.

This result broadly aligns with the ambitions of the sector growth strategy launched in late 2023 and the publication of the final report from the Scottish Taskforce for Green and Sustainable Finance in late 2024.

The news comes following Edinburgh’s strong placing in the Global Financial Centres Index, placing 29^th overall in March.

While there are certainly positives to take in isolation in terms of Edinburgh’s performance, the continuing drop in confidence in the development of green finance in financial centres is concerning.

In the last edition of the index, the average rating was down 1.96%, whereas in this edition the average rating is down 5.91% compared with GGFI 14, with all centres dropping in the ratings. This may reflect changes in the outlook for the economy generally and the change in government direction in the US.

The result highlights the city’s continued strength as a world leader in green finance, with Edinburgh’s proximity to London, growing expertise in fintech and green finance, and strong pool of talent creating a compelling proposition for the sector in Scotland.

Sandy Begbie CBE, chief executive of Scottish Financial Enterprise, said: “To have Scotland’s capital city continue to improve its rankings among the leading financial centres highlights the value of financial services sector to the Scottish economy.

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“Our outstanding pool of talent, well-established ecosystem and world leading universities, combined with our relationship with London, provide a distinctive proposition for businesses looking to establish themselves in the UK market.

“However, there is still work to be done if we are to achieve our targets of making a Scotland a global leader in green finance, and our focus remains on implementing the key recommendations of the Scottish Taskforce for Green and Sustainable Finance.

“We will need the continued support of UK and Scottish governments to ensure that we have the framework to meet these targets and with Edinburgh set to host Scotland’s investment summit in October we will have the perfect opportunity to highlight the opportunities for growth in Scotland.”