The UK’s Chancellor, Rachel Reeves and Business Secretary, Jonathan Reynolds, have instructed officials to bring the UK Infrastructure Bank and the British Business Bank together into a new National Wealth Fund, which will facilitate investment into green economies.
A new task force, chaired by the Green Finance Institute, has been formed to kickstart the work of the fund. As part of this, £7.3 billion will be made available so that green investments can begin immediately. Much of this will be used to boost growth in the UK’s green industry, an area which many believe needs significantly more investment in order to meet net zero targets.
Chancellor of the Exchequer Rachel Reeves said: “This new Government is getting on with the job of delivering economic growth. I have been clear that there is no time to waste. I have previously committed to establishing a National Wealth Fund. I am now going further by bringing together key institutions.
“We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off.
“That is why in less than a week we are establishing a new National Wealth Fund and bringing together the key institutions that will help unlock investment in new and growing industries. Britain is open for business – and the work of change has begun.”
Energy Security and Net Zero Secretary Ed Miliband added: “Our mission to make Britain a clean energy superpower is about investing in Britain. Our National Wealth Fund will help create thousands of jobs in the clean energy industries of the future to boost our energy independence and tackle climate change.
“We’re acting immediately, wasting no time and working in lock-step with industry to unleash private investment and grow our economy.”
Dr Rhian-Mari Thomas, Chair of the Taskforce and CEO of the Green Finance Institute, said: “The Taskforce recommendations set out how a combination of catalytic capital, deployed in partnership with a government delivering policy certainty, can make the UK the destination of choice for global investment.
“The National Wealth Fund will reshape the way we approach public, private risk-sharing, providing private investors with the confidence needed to fund the technologies and infrastructure needed to drive growth and create new jobs across the UK.”
New government sets the course for climate action
In less than a week since the UK’s general election saw a landslide victory for the Labour party, incoming Prime Minister Kier Starmer has already made bold moves in the UK’s green space.
As well as the launching of the National Wealth Fund to boost green investment, the incoming Labour government has also lifted the de facto ban on onshore wind farm development, earning major praise from across the industry.
Responding to the ban lift, RenewableUK’s chief executive Dan McGrail said: “Lifting the onshore wind ban in England was long overdue and we’re delighted that Labour has made this one of its first priorities in office. This shows that the new Government is determined to act fast to tackle some of the longstanding barriers which have held the UK back on developing vital new clean energy infrastructure.”
Alethea Warrington, senior campaigner at climate charity Possible, agreed and added: “The new government should also move as quickly as possible to deliver the further action needed to cut both energy bills and emissions, including insulating homes and ensuring greater roll-out of wind and solar energy across the UK, including community energy.”
