20 December 2021
Green Investment in the Spending Review 2021

As the UK was the first G7 economy to legislate to achieve net zero emissions, I welcomed the Prime Minister’s Ten Point Plan and the subsequent Net Zero Strategy which will allow us to forge ahead in eradicating the UK’s contribution to climate change. The Autumn Budget and Spending Review confirms that between March and October 2021, the Government has committed a total of £30 billion of domestic investment to the green industrial revolution 

I particularly welcome the Autumn Budget and Spending Review's focus on green transport investment through the provision of £416 million of UK-wide R&D funding for programmes to help commercialise low and zero emission transport technologies, including trials of three zero emission HGV technologies and a multi-year Clean Maritime Demonstration Competition. In addition, £180 million is provided to kick-start the development of commercial-scale UK sustainable aviation fuel (SAF) plants and a SAF clearing house to test and certify new fuels. 

The Government has also announced its intention to enable the new UK Infrastructure Bank (UKIB) to provide financing for strategic and high value net zero projects and crowding in private sector investment for such projects. The UKIB will also build an expert advisory service to assist local authorities with the development and financing of green infrastructure. 

I am also delighted that the UK recently issued the UK’s first-ever Sovereign Green Bond, becoming the first country in the world to make Taskforce on Climate-Related Disclosures mandatory by 2023. I am proud that the UK has also used its chair of the G7 to broker an agreement to move towards making climate disclosures mandatory across their respective economies.  

 

Furthermore, I was excited to see the Chancellor unveil a roadmap for sustainable investing which includes details on Sustainability Disclosure Requirements and a new UK Green Taxonomy which will create a shared understanding of which economic activities are classed as green.