Green finance Net zero transition

Reactive to Spending Review 2020

 

Reacting to the Chancellor of the Exchequer’s Spending Review, Nick Molho, Executive Director at the Aldersgate Group, said: “The challenging economic context presented by the Chancellor of the Exchequer today underscores the importance of aligning the UK’s spending commitments with the Prime Minister’s Ten Point Plan and the UK’s climate and environmental goals. The Spending Review’s commitment that the UK’s economic recovery ‘must be green’ sends a positive signal. We welcome the creation of a national infrastructure bank and would urge that the net zero target, the Environment Bill targets and the levelling up agenda are all central to its mandate. To be effective and crowd in private investment at scale, such a bank will also need to be sufficiently well capitalised, with recent analysis commissioned by the Aldersgate Group recommending £20bn paid in capital over 4 years.” [1]

Nick Molho added: “A key task for the Government in the near future will be to introduce new regulations and market mechanisms to drive private low carbon investment in critical areas such as buildings, heavy industry and nature restoration. This will be essential to deliver the Chancellor’s objective of accelerating private investment in infrastructure and putting the UK on a credible pathway for net zero emissions and delivering the goals set out in the 25 Year Environment Plan.” [2]

 

[1] On 15 July, the Aldersgate Group published Rebuilding to Last, a report from James Rydge an Dimitri Zenghelis at the Grantham Research Institute at the London School of Economics, looking at the key measures needed to put the UK on path to a sustainable, durable and socially inclusive economic recovery. The report called for the creation of a national investment bank with a paid-up capital of £20bn, with £5bn a year paid for 4 years. The report is accessible here:  https://www.aldersgategroup.org.uk/latest#rebuilding-to-last-uk-must-not-go-back-to-the-old-normal

[2] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

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