The UK’s future economic, social and environmental prosperity will be shaped by how it deals with, and recovers from, the impact of COVID-19. This paper sets out coordinated net-zero-aligned investments which the UK can place at the heart of its recovery plan. It provides evidence on the benefits they can deliver in generating employment and stimulating demand in the short term, and building capacity for innovation-led growth in the medium to longer term.

The paper sets out six key areas where government investment could create jobs and advance the fight against climate change:

  • Energy efficiency in buildings
  • Natural capital projects
  • Active travel equipment and infrastructure, such as bicycles and cycle lanes
  • Renewable power generation, distribution and storage
  • Electric vehicle production and charging infrastructure
  • Carbon capture, use and storage, and blue and green hydrogen production

The authors add that there will also be longer-term employment and growth benefits as global demand for cleaner and more environmentally-friendly products and technologies is set to increase rapidly. And they demonstrate that the UK already has manufacturing strengths in a number of green technologies, including making parts for wind turbines.

The paper recommends that investments that create jobs in the short term should be complemented by investments, policies and incentives for building innovation and skills to meet these longer-term challenges.

A joint paper with the Centre for Economic Performance.

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