Investing in the transition

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We share our reflections on the UK’s recent policy announcements and commitments including COP26. The briefing paper explores the changing energy landscape from a policy and finance perspective recognising the significant role scaling investment will have in the transition.

UK energy and fiscal policies continue to evolve at an increasing rate as the government strives to deliver its net zero climate ambition. Since our publication in March, Energy Policy Review: Driving the Transition1, there have been several key policy announcements, including commitments at COP26, which continues to place the UK as a global leader in the energy transition. Most recently, the government’s Net Zero Strategy: Build Back Greener document2 set out plans for reducing emissions from each sector of the economy whilst promoting low-carbon technologies to capture any additional emissions.

The common thread throughout all these publications is the significant level of capital that needs to be raised and the opportunity this creates. This year has also seen major changes on companies financial reporting and disclosure requirements, with investors and regulators looking far closer at environmental, social and governance performances. This has been on a national and international scale with the introduction of taxonomies and the task force on climate-related disclosure (TCFD) requirements to drive forward transparency. The HMT net-zero review and greening finance framework published alongside the net zero strategy are key milestones in this evolving landscape with each working in unison to provide momentum, cost, and delivery to unlock net-zero.3

This publication can be downloaded free of charge.