Finance industry warns UK Govt of consequences of climate wavering

Written by Adam Cadle

29/08/2023

Asset owners, investment managers, banks and other financial institutions representing £1.5trn in AuM have warned that the UK Government’s recent rhetoric risks stopping the finance sector from making the transformative investments needed to reach net-zero and grow the economy.

In a letter sent to UK PM Rishi Sunak from UKSIF, signed by 36 of its member financial institutions, the industry warned that without long-term clarity from Government, the £50-60bn per year of investment needed to reach net-zero won’t happen.

The institutions are urging the Government to make it clear that important policy pillars driving investment, like predictable carbon pricing mechanisms, the transition to EV, and improved energy efficiency standards for housing, will not be changed abruptly.

When the Government looks committed on climate change, investors follow and can channel private capital into new technologies and projects that will decarbonise the country, UKSIF argued.

UKSIF CEO, James Alexander, stated: “The global competition to capture billions of pounds of private investment in the clean industries of the future is intense. Ministers’ recent remarks are undermining investor confidence and putting the UK’s net zero head start at risk.

“The major financial players are deciding where to invest, and the UK needs to look both attractive and consistent as a leading destination for sustainable investment.”

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