Barclays Pushes U.K. Government to Prioritize the Energy Transition

Barchart · 10/17 06:26
Barclays has urged the UK government to prioritise three core actions to accelerate its transition and green finance efforts.

As part of a report released alongside the Transition Finance Market Review, the bank warned that the country’s path to decarbonisation requires urgent policy and regulatory changes.

Today’s report urged the importance of a national transition plan, as well as stronger financial incentives and a supportive regulatory framework to ensure the U.K. meets its climate goals.

Barclays highlighted the £50bn to £60bn of capital investment required annually through the late 2020s and 2030s to decarbonise the U.K. economy. It also noted that current efforts are falling short due to strategic challenges.

Daniel Hanna, Barclays’ group head of sustainable and transition finance, stated: “We need ambition to credibly scale transition finance, and today’s report from the Transition Finance Market review is an important milestone in this discussion”.

Barclays’ report outlined three areas of focus for the government.

First, the implementation of a national transition plan to provide clear sector decarbonisation pathways.

Second, the development of competitive financial incentives, including innovative products such as transition bonds to encourage businesses to invest in sustainable practices.

Lastly, Barclays believes the U.K. needs a flexible regulatory environment with broad definitions of transition finance to accommodate evolving industries and technologies.

Hannah emphasised the need for collaboration, adding: “Transition finance presents an opportunity for the UK to show international leadership and unlock growth and economic opportunities. It requires a strong, supportive policy and regulatory environment, with the public and private sectors working together”.

The government’s handling of transition finance could determine whether the U.K. becomes a leader or lags behind international competition in the green finance sector.

Barclays warned that without these changes, the capital needed to support the U.K.’s decarbonisation efforts may not materialise at the required scale.

By CityAM