PM’s speech puts economic rewards of net-zero “in peril”

The UK Sustainable Investment and Finance Association (UKSIF) has warned that the Prime Minister’s watering down of the government’s net-zero commitments has left the UK at risk of missing out on the economic benefits the transition to a sustainable economy can bring.

UKSIF is the leading membership organisation for sustainable and responsible finance in the UK. Its 300+ members manage over £19tn in assets under management (AUM).

UKSIF Chief Executive, James Alexander, said:

“When we are already falling behind our net zero targets, the Prime Minister has today announced that he will water these down further, with no economic or scientific evidence to show how this new approach will keep the UK competitive as a destination for green investment for decades to come.

“From electric vehicle production and charging infrastructure to cheaper renewable energy, tackling climate change and progressing towards a net-zero future presents huge economic opportunities for the UK, creating jobs, lowering bills, and further promoting our energy security.

“To achieve this, though, private investors need clarity and certainty from government to help finance the transition to a thriving and competitive low-carbon economy. The Prime Minister’s speech did not deliver, and as a result the government’s once-proud climate record, and the UK’s ability to reap the economic rewards that the transition can bring, are in real peril.

“While we welcome the PM’s commitment to making urgently needed improvements and changes to the UK’s power grid, it remains unclear how these changes will be delivered. There is no time to waste – The UK is already at risk of falling behind other countries who are forging ahead with huge incentives to accelerate net-zero investment.”