UK needs additional US$530bn to meet net zero targets
In a recent report conducted by PwC - on behalf of the Global Infrastructure Investment Association (GIIA) - the company reports that an additional US$530bn in infrastructure spend is needed per year in order for the UK to meet its net zero targets.
Based on 2019, the figures represent nearly double the capacity requirements going forward, and with government finances stretched due to COVID-19, PwC highlights the importance of private investment to achieve the investment needs.
“The UK’s Net Zero target is an important marker in addressing the global climate crisis, but reaching this ambitious milestone will require huge sums of investment - both in new technologies and accompanying infrastructure. We know the capital and the desire to invest are there, but investors tell us that some of the structures needed to harness this are not,” commented Colin Smith, Infrastructure Deals leader, PwC.
“Private capital stands ready to help turn the UK’s ambitious net zero agenda into reality through the delivery of environmentally and socially responsible infrastructure, but investors need additional clarity from the Government around the policy and regulatory framework that will cover these investments. The delivery of a clear and compelling Net Zero infrastructure roadmap is a crucial first step in unlocking the investment needed to decarbonise our economy and ensure a cleaner, greener future,” added Lawrence Slade, Chief Executive Officer, GIIA.
Elsewhere in the report, PwC made five core recommendations for the UK government in order to accelerate private infrastructure investments:
- Create a detailed net zero infrastructure roadmap for power systems, buildings and industry, transport and digital
- Identify and further develop revenue support mechanisms
- Collaborate with private sector investors to increase investment in emerging infrastructure technologies
- Implement best practice in infrastructure funding across UK regions
- Provide clear strategic policy guidance to regulators