Britain has committed to investing up to £217 billion in cleaner energy by 2035, aiming to significantly reduce carbon emissions and transition to renewable energy sources.

The UK government is set to introduce legislation next year aimed at regulating environmental, social, and governance (ESG) rating providers. This move is part of a broader effort to enhance transparency and accountability in the ESG sector.

As part of their “Jet Zero” strategy to achieve net-zero emissions in aviation by 2050, the UK government has mandated that 2% of jet fuel must come from sustainable aviation fuel by 2025. With the new mandate, the government hopes to significantly reduce greenhouse gas emissions and support economic growth.

Research indicates that clearer and stricter domestic green policies could redirect up to £100 billion in global investments to the UK. However, recent government actions, including weakening key net zero commitments, have led many investors to consider moving their funds to more supportive markets like the US, EU, and China. While 83% of financial service organizations still see the UK as a top market, two-thirds are contemplating or have already shifted investments elsewhere. UKSIF calls for mandatory climate risk disclosures and other regulatory enhancements to reestablish the UK's leadership in sustainable finance and attract the necessary private capital for achieving net zero goals.