STATEMENT: New Prime Minister Must ‘Stand Firm’ on Net Zero to Maintain Long-term Investor Confidence

Commenting on Prime Minister Andy Burnham’s expected support for further North Sea oil and gas drilling, UK Sustainable Investment and Finance Association CEO James Alexander said today (20/07/2026):

“Pushing ahead with further North Sea fossil fuel extraction runs completely out of step with the global shift to clean energy.

“The UK’s oil and gas assets are already coming under increasing pressure from cheaper renewable generation.

“Long-term decommissioning costs, forecast to reach tens of billions of pounds, are also set to weigh on the underlying viability of this sector in the years ahead.

“This decision risks leaving investors questioning the government’s policy direction on clean energy, just as global competition for infrastructure capital is intensifying.

“The new prime minister must stand firm on commitments to reach net zero emissions by 2050, so private finance has the confidence to invest in the transition.”

Commenting on the priorities Prime Minister Burnham’s new government should take for the sustainable finance sector, James Alexander said:

“The prime minister must build on the Labour Party’s manifesto commitment – to make the UK ‘the green finance capital of the world’.

“This means introducing workable, mandatory climate transition plan disclosure requirements for large listed and unlisted companies, so they can remain resilient and competitive over the coming decades.

“His government must continue to break down planning barriers and tackle grid connection bottlenecks that have hampered financing for clean energy projects.

“He also needs to deliver on pledges to upgrade millions of homes with efficiency measures, which can unlock private investment, create skilled jobs and fuel economic growth.”

ENDS

Notes to editors:

UKSIF’s recent membership survey showed 87% of respondents expect both global and UK-specific “investment in renewable energy projects” to increase following the start of the conflict in Iran – read here.