The UK government has set "clean energy" as a priority investment sector for its new national wealth fund, and set out a plan for the fund to interact with newly-formed Great British Energy to drive decarbonisation.
The two organisations will interact to provide a "strong end-to-end clean energy development and finance offer" and help the country hit its net zero targets, the government said. Great British Energy — staffed by specialists in the sector — will provide "development expertise", while the wealth fund will deliver finance, the government said.
Great British Energy "will develop, invest in, build and operate clean energy projects across the UK", including owning stakes in the projects it develops itself, the government said. The organisation will develop "clean energy assets from inception", as well as co-develop and invest in more advanced projects.
The national wealth fund "will unlock over £70bn ($90.7bn) in private investment to help deliver economic growth, make Britain a clean energy superpower, and strengthen the defence sector", the government said. The fund will prioritise investment in "clean energy, advanced manufacturing, digital technologies, and transport", and flagged likely spending on carbon capture and green hydrogen projects, as well as gigafactories and "green steel".
The government has made commitments to "clean power" deployment and hitting the UK's legally-binding net zero by 2050 target central to its approach, sticking to pledges made ahead of last July's election. The government is targeting 95pc "clean power" by 2030 and consulted on a "clean energy future" for the North Sea earlier this month.
