“Government needs to lead. We heard throughout our research that industrial strategy is about setting the direction and the boundaries for the private sector to follow. We cannot afford to wait. We are far behind on our climate targets, and the UK economy is in recession. Investment from both government and private finance is central to solving both those challenges. But without the building a closer relationship between the state and the City, now, through a green industrial strategy will create, we will never get the scale or pace of spending we need.”

“Net zero presents a challenge to the City like no other. This isn’t about investors identifying the best returns. We already know the tech and infrastructure we need, it’s about financing them at the scale required. Whilst our financial services sector is world-leading, neither firms nor our regulators are currently set up to confront this challenge. Equally a lack of strategy and insufficient catalytic investment from government are holding back progress. “It’s a myth that there is a single, simple, de-regulatory reform that will unleash private investment. This report sets out a mix of policies, developed in conversation with investors themselves, to provide much-needed finance for an ambitious green industrial strategy.”

“After leading the green finance agenda for the last five years, the Green Finance Institute is delighted to have supported IPPR with the technical insights and network to enable this critical report. We stand ready to support the government to mobilise the billions we need for the net zero transition in the UK, for which this report provides an actionable roadmap for the public and private sectors in the year ahead.”

“Investment managers have an important role to play in the transition to a net zero economy and it is important that their insights are heard by policy makers. As such, we were pleased to sponsor this report, which canvassed a wide range of stakeholders, and outlines the crucial role that collaboration between private capital and the public sector plays in bringing about effective, tangible and positive change. The report highlights the risk that we concentrate too much on describing the problem and not enough on solving it. It’s time to create a culture of greater collaboration between policymakers and industry to create a market for growing innovative industries in the UK.”

"Sustainable finance and the green transition provide an opportunity for transformational economic growth. The UK needs strong economic growth as a growing economy means more investment, more jobs, and more funding for public services. To reach the UK’s legally binding net zero commitments, private capital must play a significant role. Working together, the public and private sectors can jointly do even more – and the City stands ready to partner. I am pleased that today’s report by the IPPR, with contributions from the Green Finance Institute, provides a host of clear recommendations on how we can progress against our green ambitions. Sustainable finance is one of the best tools available to meet climate targets and London is well placed to be the world leader in driving growth and innovation in sustainable finance."

“To unlock the full potential of private-sector investment, new models of funding that blend public and private finance are crucial to reduce risk and make more projects investment grade. Long-term strategies, sector-specific interventions and the principle of catalytic state investment as detailed in this report are all ideas we support and are putting into action through the Investment Delivery Forum.”

“Private capital will be essential to the net zero transition, and we know financial services has a critical role to play. We need a clear, consistent direction of travel to enable firms to allocate capital where it is needed to transform and decarbonise the economy quickly. UK Finance welcomes this research, which echoes our own findings and calls for stronger net zero policy leadership from all Parties.”

"This report is an important call to arms for those who want to see Government and private capital working together to deliver investment in the transition. Private Equity and Venture Capital backs businesses for the long term – on average five to six years – and plays a vital role in providing the expertise, capital and long-term perspective needed in driving the energy transition and sustainability including in the scale up of new businesses to meet these emerging challenges . That is why thoughtful contributions like this one, which bring in voices from across the sector are so key in shaping the agenda. We look forward to working with all involved and with Governments of all stripes to take this vital agenda forwards."

“Private sector finance is the true prize in unlocking the UK’s net-zero transition. This report rightly reflects the need for clear and decisive policy, founded on collaboration between public and private institutions, to bring the huge investment potential of the UK to fruition and rapidly advance faltering progress towards net zero.”

“A successful transition to a net zero economy can only be achieved through public and private sectors collaborating and playing their parts. At Investec, we strongly believe that businesses have a responsibility to support this transition. This blueprint is an essential tool to help public and private sectors come together – ultimately leading to a better and more equitable world for all.”

“Unlocking UK growth requires the rapid mobilisation of green investment. However, the huge investment appetite of Britain’s private sector will not be unlocked without government action to rebuild market confidence in the UK’s net zero direction of travel. This requires a whole-of-economy plan which leverages Government’s full toolkit, including regulatory reform, policy clarity and catalytic public investment. Delivering this smart and coherent green growth strategy is not just essential for the UK’s net zero target, it is vital if the UK is to be a thriving, internationally competitive economy for years to come.”

“The financial industry has made a series of commitments for the transition to a net-zero economy. However, an enabling policy environment is essential to mobilise capital towards this goal. This report’s emphasis on long-term strategies, catalytic public finance, and sector-specific policy interventions aligns seamlessly with our commitment at Bankers for Net Zero. A successful transition necessitates a robust partnership between public and private sectors, as outlined in this report. We actively advocate for these recommendations, facilitating dialogue among policymakers, regulators, and industry stakeholders through initiatives like our Perseus program, showcasing the transformative potential of pre-competitive collaboration across the market.”