Clean Energy: Finance
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the role of pension fund capital in financing the clean energy transition.
Answered by Michael Shanks
The Government recognises the important role pension fund capital plays in financing the clean energy transition. Delivering Clean Power by 2030 will require an estimated £40bn of investment annually, and the net zero transition in the UK requires around £145bn of investment annually across low carbon sectors from 2026 to 2050, according to modelling from BloombergNEF. We’ve had £100 billion of clean energy investment since July 2024.
The Government is actively engaging with domestic and international pension funds and other institutional investors to understand barriers to investment and to support greater investment into clean energy industries. We are working to provide the policy certainty, stable market frameworks and public finance interventions needed to crowd in private capital and maintain the UK's position as a leading destination for clean energy investment.
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