The UK government must enact clear policies if it is to harness the growth potential of low-carbon industries, the UK Sustainable Investment and Finance Association (UKSIF) has said.
“We know there are hundreds of billions in private investment looking to finance low-carbon technologies internationally. The boom is global, but our domestic policy will decide whether Britain feels the full benefit or not,” said UKSIF chief executive officer James Alexander.
His comments came as the UK Climate Change Committee (CCC) today published its seventh carbon budget which lays out its recommendation to the UK government on how to achieve net-zero carbon emissions by 2050, while highlighting key investment opportunities.
“As other geographies flounder and send mixed signals, the UK can establish a competitive advantage by establishing ourselves as the destination of choice for green investment,” Alexander added.
Established under the UK’s Climate Change Act (2008), the CCC is an independent body whose purpose is to advise the UK government on emissions targets and adapting to the impacts of climate change. The CCC budget is published every five years.
According to the report, the UK must reduce its emissions by 87% by 2040 compared with 1990 levels. Furthermore, it states that the UK must limit its emissions to a total of 535m tonnes of carbon dioxide equivalent between the five-year period of 2038 and 2042.
Professor Piers Forster, interim chair of the CCC, said: “Our analysis shows that there is no need to pitch action on climate change against the economy. We will need government and business to deliver the investment, but we are confident that this seventh carbon budget offers a secure, prosperous future for the UK.”
Achieving net zero
The CCC report also coincides with analysis from the Confederation of British Industry (CBI) published earlier this week that found the UK’s net zero economy is growing three times faster than the overall economy itself.
Last month, UK chancellor Rachel Reeves came under fire for saying that economic growth trumps net zero, which UKSIF criticised at the time.
According to the Green Finance Institute, the budget highlights the urgent need for emission reductions across key sectors and emphasises private capital’s role in driving investment towards the transition to net zero.
Rhian-Mari Thomas, CEO of the Green Finance Institute, said: “Delivering the CCC’s balanced pathway requires innovation and close collaboration between the public and private sectors to encourage the adoption of low-carbon technologies, build the skills and supply chains needed to deliver the transition, and mobilise capital at scale to address the private financing need identified by the seventh carbon budget.”
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