A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

Investor Support Key for Labour Green Plan

Industry members have welcomed the scale of the new UK government’s ambitious transition plan following Labour’s win last week, but have stressed the need to secure enough investment to meet those targets. As part of its Green Prosperity Plan, the Labour party has committed to doubling onshore wind, tripling solar power and quadrupling offshore wind – but ensuring the right energy generation mix is maintained through supply security will require strong investment signals and action on planning, according to LCP Delta – a consultancy supporting the energy sector through its transition. Plans to reach a clean power sector by 2030 mean gas generation will fall significantly as the sector decarbonises, which will also reduce the profitability of existing energy plants. However, maintaining an operational gas fleet will be essential for the security of supply, LCP stressed. “Labour has outlined the need for a strategic gas reserve for this reason,” the group said. “[Our data] suggests that an efficient market-based mechanism would reduce costs and could be viable through specialised capacity market auctions for converting gas stations.” Faster decarbonisation could also bring further challenges – such as pressure on supply chains and network infrastructure. “The Green Prosperity Plan will be delivered through multiple new funds and investment vehicles, including the National Wealth Fund and Great British Energy, which have the potential to help mitigate these risks,” LCP said. “The government will want to carefully consider the support it provides to some technologies and project types to maximise its impact and avoid crowding out private investment.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top