{"id":21700,"date":"2017-04-24T00:01:00","date_gmt":"2017-04-23T23:01:00","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=21700"},"modified":"2024-08-19T14:37:07","modified_gmt":"2024-08-19T13:37:07","slug":"financing-low-carbon-growth-and-innovation","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/financing-low-carbon-growth-and-innovation\/","title":{"rendered":"Financing low-carbon growth and innovation in the UK Industrial Strategy"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>This policy brief outlines how the public sector can crowd in private finance to support low-carbon growth and innovation in the UK government&rsquo;s Industrial Strategy.<\/p>\n<p><strong>Headline issues<\/strong><\/p>\n<ul>\n<li>Funding the UK&rsquo;s Industrial Strategy will require mobilising large amounts of private sector funding for infrastructure and emerging technologies.<\/li>\n<li>To be future-proof, that infrastructure and technological development must be aligned with the government&rsquo;s strategy for a low-carbon transition.<\/li>\n<li>This will require clear and forward-looking policy to encourage long-term funding in sustainable infrastructure and emerging clean technologies from private equity firms, institutional investors, and capital markets.<\/li>\n<\/ul>\n<p><strong>Recommendations<\/strong><\/p>\n<p>There are four areas the government can focus on to encourage long-term private sector investment in low-carbon growth and innovation:<\/p>\n<ol>\n<li><strong> The Industrial Strategy needs to be supported by a trusted framework of climate policy fundamentals<\/strong>, in particular energy efficiency, transport beyond 2020, carbon capture and storage, and mature low-carbon energy generation.<\/li>\n<li>To maintain investment from the private sector in low-carbon infrastructure and strategic sectors, <strong>the government must develop a contingency plan to safeguard the role the European Investment Bank and Green Investment Bank<\/strong> have played in providing direct financing and credit enhancement, and must <strong>scale up investment<\/strong> to the level necessary for the low-carbon transition.<\/li>\n<li>To connect the UK capital markets with the Industrial Strategy, the government should <strong>encourage wider disclosure of climate-related risks and support additional issuance of bonds for renewable energy<\/strong> and other low-carbon projects.<\/li>\n<li>The government should consider <strong>developing an overall strategy for green finance<\/strong>, to be overseen by BEIS or Her Majesty&rsquo;s Treasury.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><em>The analysis in this brief builds on discussions from an ESRC-sponsored workshop on how the UK can mobilise green finance for the Industrial Strategy. Held in London in March 2017, the workshop was attended by government and business stakeholders. <\/em><\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>This policy brief outlines how the public sector can crowd in private finance to support low-carbon growth and innovation in the UK government&rsquo;s Industrial Strategy.<\/p>\n\n","protected":false},"author":12,"featured_media":21777,"template":"","tags":[589,219,896,828,136,437],"publication-type":[1682],"topic_area":[4696,4711],"class_list":["post-21700","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-industrial-strategy","tag-innovation","tag-low-carbon-transition","tag-low-carbon-growth","tag-private-investment","tag-uk","publication-type-policy-publications","topic_area-uk-emissions-policy","topic_area-banking-and-private-investors"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2017\/04\/Matikainen-2017.pdf"],"type":"download","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["sini-matikainen"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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