With growing consensus from across the private sector on the need for a Net Zero Financing Plan, Baringa Partners – in collaboration with E3G and WWF UK – have set out a clear methodology for how the UK government should develop the detailed sectoral investment roadmaps that must underpin the upcoming update to the Carbon Budget and Growth Delivery Plan.
The need for a net zero investment plan
Net zero is the economic opportunity of the 21st century and must be central to the UK government’s growth mission and upcoming industrial strategy. The transition can deliver skilled jobs, economic growth and clean energy security while re-establishing the UK as a global leader in tackling the climate and nature crises. It is estimated up to £57 billion could be added to the UK economy by 2030 through the net zero transition, while delivering up to 1.6 million jobs.
One of the major barriers to the UK delivering on its net zero goals, and accessing the economic benefits that will come with it, is attracting the required investment. The UK lags its G7 competitors in terms of investment, UK companies have invested 20% less than those in the US, France and Germany since 2005, placing Britain in the bottom 10% of OECD countries, and costing the economy 4% of GDP. This must be turned around if the UK is to meet its net zero targets.
To meet this need, the UK requires a Net Zero Investment Plan (NZIP). E3G, alongside WWF-UK and a host of private sector partners, is calling for the government to:
- Produce sectoral financing roadmaps, which map onto an economy-wide financing plan for the UK’s decarbonisation goals
- Mandate the independent, regular and transparent tracking of financial flows
Taken together, these roadmaps would provide a comprehensive, cross-economy strategy for crowding in the investment needed to drive growth and meet the UK’s net zero objectives, underpinning the soon-to-be-updated Carbon Budget and Growth Delivery Plan.
A clear and actionable methodology
The Power Sector Investment Roadmap is based on the clean power pathway previously developed by E3G and global consulting firm Baringa.
Baringa Partners’ latest report sets out a clear and actionable methodology for creating sectoral investment roadmaps that will form the backbone of a comprehensive Net Zero Investment Plan (NZIP). The approach is designed to:
- Map current investment flows against the best-value technology mix for reaching net zero.
- Identify targeted policies — from regulation to incentives — to close investment gaps and unlock private capital.
- Establish clear milestones, timelines and tracking to measure progress and ensure delivery.
Using the UK power sector as a proof-of-concept, the study demonstrates how this approach can deliver the government’s Clean Power 2030 Mission while aligning with the wider economy’s pathway to growth and net zero.
Download the full report
