Insurance giants among those urging next UK Govt to boost green project investment

Written by Adam Cadle

19/04/2024

Some of the UK’s largest investment, insurance, and pension firms, have today backed a new report calling on whoever forms the next government to use the first 100 days in office to deliver a series of reforms that can trigger a major boost to investment in green projects.

The Partnership for Prosperity programme has been published by the Investment Delivery Forum, which was formed last summer by the ABI, and backed by the likes of Aviva, Phoenix Group and Royal London.

The report stated that the UK faces a £615bn funding shortfall to meet requirements for energy, transport and housing infrastructure by 2030. The Forum has urged a future government to empower institutions such as the Office for Budget Responsibility and National Infrastructure Commission to evaluate and consider the impact of major public spending initiatives through job creation and long-term revenue growth in a way that builds confidence in favour of public and private investment.

Furthermore, it said the next government should hold a green investment summit to explore how the private sector and government can work together to meet the UK’s Net Zero objectives and invest in green infrastructure. Delays to new homes and onshore wind power developments should also be removed it argued, by moving these into the Nationally Significant Infrastructure Projects (NSIP) regime and restoring mandatory housing delivery targets.

Finally, a future government is being urged to unleash ‘green and good’ investment through government guarantees and co-investment by government; improve the energy efficiency of housing; increase delivery of quality, affordable and sustainable new homes; deliver more renewable energy and grid infrastructure; and secure the skills to support green industries.

Baroness Nicky Morgan, chair of the Investment Delivery Forum, said: “At the core of this policy programme is an understanding that when government and the private sector work in partnership, the UK succeeds.

“We’re facing a significant investment shortfall and the recommendations offered in this programme provides a blueprint for all political parties on how we can work together to deliver green investment, achieve net zero, build new homes, and unlock growth that benefits every corner of the country.”

Hannah Gurga, director general of the ABI, added: “Since it was established last year, the Investment Delivery Forum has made significant strides in preparing the insurance and long-term savings sector to invest £100bn in productive assets over the next decade.

“The recommendations in the Forum’s policy programme are a crucial next step in setting out how the government can support insurers to maximise the opportunities of Solvency UK now and into the future.”

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