The UK’s Net Zero Energy Transition: infrastructure and ambition

Insurance asset management teams need to be aware of pitfalls in energy sector before getting involved – but rewards are there – even if political will is wobbling amid backlash.

Uk Net Zero Transition @Pixabay.
The path to net zero in the UK is also far from straightforward, with question marks around infrastructure capacity highlighting the need for extensive capital allocation and commitment from the private sector to make net zero a reality. 

The UK became the first major global economy to commit to net zero in 2019, setting a legally binding target by 2050.

Since then, the tenor of the discussion surrounding the UK’s net zero aspirations has shifted, from a policy initially met with widespread political and public approval, to a subject of increasingly polarised debate. Much of this shift has been the result of geopolitical turbulence, which has prompted a reassessment of political priorities.

For investors, this has left many with the unsavoury prospect of grappling with a lack of policy certainty, on top of the existing challenges surrounding regulatory complexity and the evaluation of risk-return dynamics on net zero investments.

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