Boris Johnson’s announcement of a 10-point plan to kick-start a ‘green industrial revolution’ in the UK has met with muted enthusiasm from some of the industry’s leading environmental investors. 
Interest in tackling climate change solutions has gained significant momentum during the pandemic, as investors have shown a greater interest in solving major social and environmental issues.
Johnson’s 10-point plan is the latest green announcement from the government and involves £12bn in government investment would create and support 250,000 new ‘green’ jobs, as well as help it meet its net zero carbon ambitions by 2050.
He said: “My 10-point plan will create, support and protect hundreds of thousands of green jobs, whilst making strides towards net zero by 2050.
“Our green industrial revolution will be powered by the wind turbines of Scotland and the north-east, propelled by the electric vehicles made in the Midlands and advanced by the latest technologies developed in Wales, so we can look ahead to a more prosperous, greener future.”
But some have said the plan doesn’t go far enough to address the issues it hopes to tackle.
Phil Kent, manager of GCP Infrastructure Investments fund, said: "Whilst £12bn sounds like a lot of money, in the context of what is required arguably it falls short – particularly given there is no time frame put on the amount.
“The Climate Change Committee’s own estimates point to costs of getting to net zero of around £50bn per year, and even the government’s estimate was higher at £70bn a year.
“The announcement refers to mobilising ‘potentially three times as much from the private sector’ –policy support is needed to make this happen.”
Nevertheless, Kent said the direction of travel was positive and points to a strategy which is likely to prompt opportunities for private sector investment as the detail of the plan is fleshed out.
One of the plans is to increase wind power generation and become “the Saudi Arabia of wind”, quadrupling the how much the UK produces to 40 gigawatts by 2030.
However, while admirable, Richard Lum, co-chief investment officer at global renewable energy infrastructure investor Victory Hill Capital, said the UK will need the infrastructure to store and carry the power to homes.
He explained: “The UK's electricity network requires investment as it was not originally designed to accommodate these modern, renewable sources of energy, nor store the extra capacity generated on particularly sunny or windy days.
“We would suggest the government address this issue before grandiose plans are put in place to increase the amount of renewable energy being pumped into an ageing system.”
Lum added: “This plan marks a step in the right direction for the UK to build a more sustainable future, but all governments must take a realistic approach to the energy transition not just on a local, country-by-country basis, but by working with partners around the world to tackle what is a global issue.”
While welcoming the announcement, Deirdre Cooper (pictured), co-portfolio manager of the Ninety One Global Environment fund, said there was still “a huge wall to climb”.
Part of the 10-point plan included news that the sale of new petrol and diesel cars would be banned from 2030, 10 years earlier than planned.
“In some ways this only reinforces an existing trend, given in the month of October more electric vehicles were sold in Europe than diesel cars for the first time in history,” said Cooper.
“We believe we are entering a self-enforcing downward spiral for internal combustion engine cars that is getting steeper and steeper, and a commensurate tipping point in electric vehicle growth.”
Tony Dalwood, chief executive of Gresham House, said more niche areas of “alternative investing” are likely to benefit over the coming years.
“As the UK works to re-energise the economy and put it on a more sustainable footing for the future following the Covid-19 pandemic, it is pleasing to see the government identify a wide range of areas in their 10-point plan across the UK such as increased capacity for offshore wind, forestry and sustainable infrastructure,” he said.
“As a result, we will see these areas of alternative investment grow globally over the next few years.”