May 29, 2024
Investments

Investment giants urge next government to boost green investment  


The Investment Delivery Forum has published its Partnership for Prosperity policy programme, calling on further government and private sector collaboration to unlock green investment opportunities. 

The Forum, set up by the ABI, also detailed how the two could build new homes and deliver nationwide growth as part of its programme, released at the end of last week (19 April). 

Established last summer, the organisation aims to help channel £100 billion into ‘green and good’ projects that benefit the environment and economy over the next ten years once post-Brexit regulatory changes come into force. 

Last year, research conducted by the Forum found the UK needs over £1.3 trillion in investment by 2030 to deliver on energy, transport and housing infrastructure ambitions. That means the country faces a £615 billion funding shortfall. 

The Partnership for Prosperity policy programme outlines steps to support the industry’s ability to accelerate investment and narrow that financial gap – “solving the UK’s investment gap”. 

Urging fact and decisive action, the Forum divides its recommendations into two categories: those to be made in the first 100 days after the anticipated General Election and those to be taken in the months following.  

Baroness Nicky Morgan, chair of the Investment Delivery Forum said: “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.”  

Moving quickly: First 100 days  

The programme suggests holding a Green Investment Summit to explore how the government and the private sector can collaborate to meet the UK’s net zero objectives and invest in green infrastructure.  

According to the programme, the next government should give institutions such as the Office for Budget Responsibility and National Infrastructure Commission more independence to build investor confidence that government programs can effectively leverage private sector investment in clean infrastructure and other green initiatives. 

The programme also states that the government should remove delays to new homes and onshore wind power developments by moving them onto the Nationally Significant Infrastructure Projects regime and restoring mandatory housing delivery targets. 

After 100 days  

As laid out by the Forum, the next government should then open up ‘green and good’ investment through guarantees and co-investment, strengthen blended finance partnerships at a national and local level, and strengthen the remit of the Office for Investment with a targeted focus on strategic sectors and new powers to negotiate deals and partnerships with business. 

It further suggests the government develop a framework to incentivise and require retrofitting to improve housing energy efficiency; increase delivery of quality, sustainable new homes by linking New Homes Bonus to sustainability attributes; require local authorities and Metro Mayors to work together on housing delivery and provide more resources to local authority planning departments.  

Investment Delivery Forum brings together major insurance and long-term savings firms with interest in large-scale infrastructure investment. It was established by the ABI in July 2023 to ensure industry would be ready to act quickly on regulatory changes.  

Hannah Gurga, Director General of the Association of British Insurers said: “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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