The newly published Green Finance Strategy document identifies significant opportunities for growth within the UK economy over the coming years.
Moreover, it is believed that such an objective can be achieved while, at the same time, meeting Britain’s climate action objectives in full.
The new strategy approach represents the latest policy blueprint – developed by HM Treasury, the new Department for Energy Security and Net Zero, and the Department for Environment, Food and Rural Affairs (Defra).
Its primary goal is to ensure the necessary finance flows to the net zero, energy security, farming and environmental industries.
The strategy document sets out how the UK Government will pursue its ambition to become the world’s first ‘Net Zero-aligned Financial Centre’, equipping the market with the information and tools necessary to drive the transition.
The new document also sets out how the UK government is working with a range of public financing bodies to commercialise and finance the technologies needed for the transition to a green economy.
This envisaged journey will boost economic growth across the country, creating almost half a million new green jobs and opportunities for businesses to export their expertise around the world, according to the government.
Funding as part of Green Finance Strategy
Future funding opportunities will include venture capital support for new and innovative climate tech solutions.
Banks will also lend to major renewables projects with asset managers allocating capital to support future green deal projects.
The 2023 Green Finance Strategy also confirms that private investment will be crucial to delivering net zero, building climate resilience and supporting nature’s recovery into the future.
It has been estimated that to deliver on the UK’s net-zero ambitions, through the late-2020s and 2030s, an additional £50-60 billion of capital investment will be required each year.
A 2021 report estimated that over the next 10 years, the UK’s domestic nature-related goals alone could require between £44-97 billion of investment.
This investment will support the sectors and technologies of the future while enabling traditional sectors to adapt and thrive as part of the transition process.
Supplying the goods and services necessary to reach global net-zero ambitions is estimated to be worth up to £1 trillion to UK businesses to 2030.
Furthermore, exports within low carbon and renewable energy industries are growing significantly faster than exports from the UK’s broader economy.
Between 2020 and 2021, it is estimated that exports from these sectors increased by 67%, compared to total exports which increased by 6%.
