The 2024 General Election made one thing clear: Britain stands at a crossroads. Leaders across every major party recognised the need to revitalise the economy and deliver sustainable growth and prosperity across our nation. However, despite growing consensus that the UK’s net zero and nature-aligned transition is a ‘historic opportunity,’ the new government risks missing out if it does not take decisive action to kickstart Britain’s green growth engine.
Addressing the climate and nature crisis, building resilience, and crowding in private investment are critical for the UK’s long-term prospects. To unlock investment at scale for UK green growth, the new government must set out a clear vision to green the financial system, revitalising the economy and delivering on Labour’s pledges of growth and stability.
The economic case for Net Zero is clear, with the UK’s green transition our ‘economic opportunity of the 21st century’. Meeting the UK’s 2050 net zero target alone could unlock over £266 billion for the UK economy over the next three decades. The green economy is not just a source of growth and innovation, it is a major one. It surged by 9% last year, far outstripping the national growth rate of just 0.1%, while providing employment for over 765,000 people across the country.
The potential of the green economy is within our reach, and it is innovative government action that can unlock this opportunity. By instilling confidence in markets through bold and proactive changes, we can unleash private capital to reinvigorate the UK economy.
Priority reforms for government
In this new joint briefing, 15 leaders across civil society urge the new Chancellor Rachel Reeves to prioritise measures to green the financial system, demonstrating to the world how to finance a successful transition to net zero, whilst building a strong and prosperous economy. We outline the priority reforms that the government must implement to deliver on this vision:
- Set out an ambitious plan to invest in green growth.
- Leverage the power of financial sector policy to drive green investment and end unsustainable financing.
- Focus our public institutions on delivering green growth and prosperity.