In this important election year, investors are looking for a supportive policy environment that provides the confidence and certainty needed to make long-term investments in the UK’s transition to net zero.
The building blocks of a sustainable finance framework are beginning to fall into place, but there is an urgent need to move ahead with swift implementation of key pieces of legislation. And while green industries have been identified by the Government as a core growth sector for the UK economy, more needs to be done to decarbonise key sectors of the real economy and capitalise on the opportunities presented by the transition.
Otherwise, the UK risks falling behind not only on delivering its legally-binding net zero targets, but also losing its status as a climate leader in an increasingly competitive global race to attract capital.
The resource contains 10 policy asks categorised under five areas:
- Develop a whole-of-government approach with a centralised strategy to facilitate delivery of net zero targets.
- Devise a comprehensive green industrial strategy that supports the decarbonisation of the UK economy and boosts economic competitiveness.
- Increase the UK’s adaptation and resilience to growing climate impacts.
- Embed the delivery of a nature-positive transition into the UK policy framework.
- Implement a supportive financial regulatory environment which facilitates capital flows towards climate and nature goals.
This is an opportunity to shift gears, and pivot permanently towards decarbonisation, channelling efforts into the effective delivery and implementation of policies which support this. The challenge ahead extends beyond securing the UK's standing as a climate leader; it involves maintaining climate ambition while navigating through an uncertain geopolitical landscape.
Success depends on near-term decisive actions and well-designed policies, effective coordination between relevant stakeholders, and a renewed commitment by the next Government to achieving net zero goals, with a particular emphasis on prioritising decarbonisation within the real economy. Doing this early in the next government’s term will see the added benefit of opening up avenues for increased private finance towards the low-carbon transition, fostering a more sustainable and resilient future.