‘Clear, credible, coordinated’: IIGCC sets out transition expectations from new UK leadership

As Andy Burnham take the helm as the UK’s new prime minister, the Institutional Investor Group on Climate Change (IIGCC) has set out recommendations for the incoming leadership.

In a report published today, the group outlined investor expectations to strengthen energy security and accelerate the energy transition. The IIGCC reckons progress over the past two years has generated momentum on the decarbonisation front.

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“As a new prime minister takes the reins of government, there is an opportunity to build on this momentum and translate ambition into accelerated delivery”, the report reads.

Faith Ward, co-chair of IIGCC’s UK policy working group says the key investor priority is delivery. “The UK has the building blocks in place; the priority now is to move faster on delivery, strengthen policy coherence and create the clear, durable pathways that institutional capital needs”, she commented.

The report focuses on five specific recommendations – a whole of government approach to net zero, a green industrial policy, bolstering the UK’s resilience to climate impacts, a nature-positive approach to transition policy and a supportive financial regulatory environment.

In each domain, the report notes progress being made but highlights gaps that institutional investors are expecting to be addressed.

Among the report’s most pressing concerns is energy cost. In a statement, the IIGCC said energy cost is a ‘central constraint’ on investment into the energy transition.

Chrid Dodwell, who also co-chairs the policy working group alongside Ward says investors stand ready to back the UK’s transition. “The case for action is increasingly driven by energy security, economic resilience and competitiveness”, he explained.

Dodwell, who is also global head of policy and advocacy at Impax Asset Management, stressed the centrality of energy cost to the investment thesis. “More competitive energy costs, clearer implementation and visible investable pipelines will be essential to unlock capital at the scale required”, he said.

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