UK Green Leadership Under Threat

More favourable sustainability-focused policies are needed to unlock green investment opportunities in the UK and prevent a mass exodus by energy companies, according to new research by the UK Sustainable Investment and Finance Association (UKSIF). The report revealed that 63% of UK energy companies had moved or planned to move investments out of the UK to markets more supportive of their sustainability goals. UKSIF polled 100 business decisionmakers across the UK energy sector, representing £700 billion (US$888 billion) in turnover, 87% of whom agreed that policy changes were essential to increase the UK’s appeal as an attractive investment location for green energy. Additionally, 81% agreed that the UK was falling behind other countries in the race to become the most investible market for low-carbon energy. Failure to implement more favourable sustainability policies means the UK could miss out on a potential £115 billion of investment in the energy sector. “An international race is underway between countries to become the most investible market for green energy, and currently, the UK is taking its leading position for granted,” said James Alexander, UKSIF’s CEO. “Multiple decades of arcane and archaic planning rules are putting the UK energy transition in great jeopardy. This report highlights the abundance of private capital waiting to be deployed to close the funding gap […] with companies clearly showing they are willing to take this investment elsewhere if policy does not evolve.”

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