National Wealth Fund Taskforce

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The National Wealth Fund, with its proposed £7.3bn of public capital, presents an opportunity to design a first of kind public-private partnership, that deploys catalytic capital to crowd private investment into priority net zero sectors.

The GFI is providing advice to the Government on how to structure and implement its commitment to create a National Wealth Fund. Dr Rhian-Mari Thomas OBE, CEO of the GFI, is the chair of an independent taskforce that includes the CEOs of some of the UK’s leading financial institutions.

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Governance structure

Incepted by: Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP

Chair: Dr Rhian-Mari Thomas OBE

Secretariat provided by: The Green Finance Institute

Mark Carney: Former Governor of the Bank of England

The Taskforce’s Terms of Reference.

FAQs

Please note that the following FAQs relate to the GFI's role in the NWF Taskforce; they do not cover off the specifics of implementation.

1. What is the National Wealth Fund?

The National Wealth Fund (NWF) is a sovereign backed green catalytic fund – it will seek to create markets for investment into new technologies and infrastructure which drive economic growth, job creation and ensure food and energy security for the UK.

Creating the infrastructure that transitions the economy for the future requires around £50 billion between 2030 – 2050 (according to analysis from the Climate Change Committee). That needs significant private sector investment. The NWF will invest in nascent technologies or projects at the initial stages of market development, to address risk and reduce private sector barriers to investment and in so doing, make these technologies commercially viable and get money flowing to ensure they are built.

By using £7.3 billion of public capital through the National Wealth Fund as seed capital to create investment models and markets we believe we can crowd in multiples of that investment (up at least £20 billion) from private markets to achieve Government industrial policy objectives that will deliver economic growth, jobs and infrastructure for the future.

2. Why do we need a National Wealth Fund?

The Climate Change Committee has estimated that it will cost £50 billion for the UK to reach net zero – this is an immense investment opportunity for both the public and private sector to transform the economy. The NWF will use £7.3 billion in public sector funding to unlock at least £20 billion in private sector finance to catalyze investment into new infrastructure and economic transition to power growth and jobs across the UK and create the foundation for a low-carbon economy.

3. What are the priority areas for the fund?

There are five preliminary sectors where NWF capital could help to catalyse private investment:

  1. Green steel
  2. Green hydrogen
  3. Industrial decarbonisation
  4. Gigafactories
  5. Ports

4. How will the NWF operate?

The NWF will be overseen by an independent board and investment committee at arm’s length from the government, managed by financial professionals and would mobilise capital and seek a return on investment. This is not a grant-giving body.

To ensure that the NWF delivers for investors, government and industry, the NWF Taskforce believes it needs operational independence but strategic alignment with government via a clear mandate and complementary economic policy. It must be additive, flexible and have speed-to-market

For speed-to-market, the NWF’s capital should initially be managed and deployed by an existing organisation(s) in the current UK development finance architecture. UKIB has been highlighted as one potential organisation of best fit. The launch of the NWF should be accompanied by a review of the government-owned development finance institutions with the objective of simplification, building economies of scale and reducing friction for private investors.

5. What type of investment and catalytic finance will the NWF offer?

The NWF must be mandated to deploy a broad range of products and financial instruments, recognising that intervention differs by sector. Equity, deployed at higher levels of risk appetite with a broad range of risk-adjusted returns to attract the broadest investor appetite, is paramount. The ability to also offer concessional debt, guarantees and price assurance products (potentially including contracts for difference and offtake contracts) would enable the NWF to take a ‘Swiss-army-knife’ approach, and deploy capital in a way that most effectively mobilises private capital.

6. What is the GFI’s role in the NWF?

The GFI is the UK and Europe’s principal forum for innovation in green finance and exists to accelerate the transition to an environmentally sustainable and resilient economy by catalysing investment to create jobs, power economic growth, ensure food and energy security and drive the transition to a low-carbon economy.

In 2024, the then Shadow Chancellor – Rachel Reeves – appointed the GFI to run the Taskforce Secretariat, with GFI’s CEO, Dr Rhian-Mari Thomas OBE, being invited to take on the role of Chair.

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"This new Government is getting on with the job of delivering economic growth. I have been clear that there is no time to waste. I have previously committed to establishing a National Wealth Fund. I am now going further by bringing together key institutions. We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off. That is why in less than a week we are establishing a new National Wealth Fund and bringing together the key institutions that will help unlock investment in new and growing industries. Britain is open for business – and the work of change has begun."

Rachel Reeves

Chancellor of the Exchequer,

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"Our Mission to make Britain a clean energy superpower is about investing in Britain. Our National Wealth Fund will help create thousands of jobs in the clean energy industries of the future to boost our energy independence and tackle climate change. We’re acting immediately, wasting no time and working in lock-step with industry to unleash private investment and grow our economy."

Ed Miliband

Energy Security and Net Zero Secretary,

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“The National Wealth Fund presents a unique opportunity to design a first-of-a-kind public-private partnership that deploys catalytic capital to crowd private investment into priority net zero sectors.” “I look forward to chairing the taskforce and to delivering a blueprint which will outline pragmatic financial solutions and a clear implementation roadmap.”

Dr Rhian-Mari Thomas OBE

CEO, the Green Finance Institute and chair of the taskforce

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“This new government has rightly identified infrastructure investment as a core enabler of building high value, low carbon, competitive industries. The smart use of public investment via the National Wealth Fund can kick start economic growth and crowd in private capital to vital sectors including ports, heavy industry and manufacturing.”

Mark Carney

Former Governer, Bank of England

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“Barclays is a committed partner to the new government’s aspiration to raise economic growth in the UK. Crucial to realising this ambition is increasing business investment - both within our domestic economy, as evidenced by our own £30bn investment into the UK, and by mobilising inward investment to come to Britain. The recommendations of the National Wealth Fund Taskforce, of which I have been a member, set out some important ways in which this can be done. In particular, I welcome the ambition to review and potentially simplify the existing economic development institutions, with the aim of making it easier for our corporate and business clients to access the partnership finance that is often needed to get infrastructure and other net zero projects off the ground.”

C S Venkatakrishnan

Group Chief Executive, Barclays

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“The National Wealth Fund can be a critical enabler of growth across the UK economy and an accelerator in deploying capital into sustainable businesses and projects. As private investors we welcome this announcement by the Chancellor and look forward to supporting this initiative to encourage public and private capital to work together.”

Shaun Kingsbury CBE

Co-Chief Investment Officer, Just Climate

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“Building a green economy requires a step-change in coordination between the government and investors, so that the policy & regulatory environment is truly enabling for long-term investors. The NWF comes at a crucial moment in the political cycle to help set that course.”

David Vickers

Chief Investment Officer, Brunel Pension Partnership

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“The NWF will play an important role in driving economic growth through attracting private capital, creating green jobs and supporting the UK’s transition to a low carbon economy. We have welcomed the opportunity to be part of the initial taskforce working with the Labour party. The Equitix team look forward to working with Ministers and government departments to help deliver the NWF and accelerating broader investment into UK infrastructure.”

Hugh Crossley

CEO, Equitix

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“The UK has led the way globally in reducing its carbon emissions in recent decades, but the next stage of the transition will require significant public and private investment. This is a major challenge and collaboration across not just the financing but also policy space is critical to deliver it in a way that supports economic growth across the UK. The National Wealth Fund has the potential to accelerate the transition and address some of the fundamental barriers that have existed to date. As the UK’s leading bank for business and the largest infrastructure lender, we will continue to support the government in the development of the National Wealth Fund, and ensure it delivers on its objectives to drive the green economy whilst also supporting communities, businesses and industry across the regions and nations of the UK.”

Paul Thwaite

CEO, NatWest Group

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“At Aviva we are backing the UK and stand ready to invest even more to help boost growth, create jobs and deliver net zero. We need closer working between government and business to make that happen. Today’s announcement of the establishment of a new National Wealth Fund is a significant step in the right direction. We now must work at pace to turn these good ideas into investable projects which can make a difference.”

Amanda Blanc DBE

Chief Executive Officer, Aviva Group

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"L&G are delighted to have contributed to the National Wealth Fund Taskforce, building on our track record of investing to help build a cleaner, greener and growing economy. We welcome the ambition of the Government to encourage further institutional investment into UK assets, and mobilise more private capital towards the energy transition, and look forward to engaging with the next steps set out in the Report."

António Simões

Chief Executive Officer, Legal & General

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"The National Wealth Fund will help the UK keep pace internationally with a growing list of countries using innovative public funding tools to attract significant private capital required to accelerate decarbonisation technologies and grow their economies."

Lisa Quest

Managing Partner UK and Ireland, Oliver Wyman

Reports

National Wealth Fund Taskforce – Report

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National Wealth Fund Taskforce: Sector Analysis

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