With over $2 trillion invested in global clean tech last year, the UK’s transition to a cleaner economy could boost GDP up to £149 billion per year, and drive a £104 billion increase in inward investment by 2040.
In their 2024 general election manifesto Labour pledged to make the UK the green finance capital of the world. Success of this goal will depend on a whole-of-economy package of reforms that will strengthen the UK’s attractiveness as both a destination for inward investment, and an outward centre for sustainable finance. To achieve this, markets and policymakers alike will require credible sustainability information to aid financial decision making.
Transition plans are central to providing that information. A key strategic tool to support the identification of growth opportunities, reduce losses and the risk of stranded assets, transition plans transparently provide credible information on a company’s activity to the market. As other jurisdictions take forwards their own requirements, it is essential that the UK moves fast to protect its leadership and avoid creating barriers to international finance flows and trade.
At London Climate Action Week 2025, the government took a stride towards this goal by publishing a package of three consultations on sustainability reporting. This briefing explains the key benefits of taking forwards an ambitious policy.
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