Mobilising pension capital for net zero: a policy blueprint for the UK
Posted on October 31st, 2024

Border to Coast, alongside pension funds representing some £1.7trn in assets, has collaborated on a landmark blueprint recommending specific policy actions to unlock pension capital to further support the UK Government’s goal of achieving clean power by 2030.
Led by pension fund-owned asset manager IFM Investors, ‘Mobilising pension capital for net zero: a policy blueprint for the UK‘ is a first-time collaboration between Australian and UK pension funds and the UK pensions trade association, Pensions and Lifetime Savings Association (PLSA).
“The transition to a net zero economy will require wholescale changes to how the economy and society functions, and demand significant capital investment. The collective scale offered by pooling enables the development of innovative solutions that not only expand Partner Fund access to the investment opportunities involved in decarbonisation – through the likes of the innovative £2.6bn Border to Coast Climate Opportunities strategy – but also to provide the capital needed to fund the energy transition and support global net zero goals. We’re proud to showcase through our own approach and this collaboration how investors can be an active part of the climate transition.”
The new UK Government wants to work closely with pension funds, both globally and locally, to boost investment in renewable energy to help meet its 2030 target.
The right policy settings can help unlock further investment in the UK’s net zero transition, drive economic growth and deliver appropriate risk-adjusted returns on workers’ retirement savings. The blueprint calls on the government to take an active and coordinated approach across fiscal, planning, climate, renewables and industrial decarbonisation policy to give investors of pension capital greater clarity and confidence in the UK market.
Key recommendations from the document include:
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Incorporating the government’s legally-binding emissions reduction targets in the National Planning Policy Framework and enabling rapid permitting of the repowering of wind farms through planning reform.
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Accelerating the deployment of renewable energy by setting clear commercial objectives for GBE and using longer-term Contracts for Difference to reduce capital costs.
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Supporting industrial decarbonisation and emerging net zero industries by directing the NWF to aid the commercial development of higher-risk emerging net zero industries
For more information, visit the IFM Investors website or read the full report here.
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