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Think tank warns that £33 billion a year investment is needed if the government is to deliver its 'green industrial revolution'

The head of IPPR’s cross-party Environmental Justice Commission has responded to the Prime Minister’s 10-point plan for a ‘green industrial revolution’.

Earlier this year, an IPPR report calculated that £33 billion a year in additional annual investment is needed to meet the UK’s net zero emissions target and restore nature. Since then, the government had committed to additional annual spending of £4 billion – just 12 per cent of what is needed - leaving a green investment gap of £29 billion a year over this parliament.

Until all the figures for the government’s new plan are published, the exact size of the remaining gap cannot be calculated.

Luke Murphy, Head of the IPPR Environmental Justice Commission, said:

"The government's commitment to a 2030 phase out for new petrol and diesel vehicles is a key milestone on the road to net zero. The government should be applauded for taking such a bold step. The announcements of new investment in charging points for electric vehicles and support for battery manufacture are also to be welcomed.

"However, what has been announced does not yet amount to the action and investment that is needed to get the UK on track for net zero and restore nature. IPPR analysis has shown that the government is currently only investing a little over a tenth of the funds needed to meet net zero and restore nature, and what is being announced today will not bridge the gap.

"The government must quickly bring forward a full plan to deliver a fair transition to net zero. This must include a net zero and nature rule, so that every new policy meets our wider environmental objectives, and a skills strategy to support workers in carbon intensive industries and the young unemployed to move into clean and well-paid jobs.

"While the new investment today is welcome, the government must also commit to investing the full £33 billion that is needed each year to meet our climate goals. For instance, the target for the delivery of 600,000 heat pumps is welcome but is not underpinned by either the strategy or investment that is required to deliver it. The investment planned for sustainable public transport and nature are also still significantly short of what is needed."

ENDS

CONTACT

David Wastell, Head of News and Communications: 07921 403651 d.wastell@ippr.org

Robin Harvey, Digital and Media Officer: 07779 204798 r.harvey@ippr.org

Luke Murphy is available for interview

NOTES TO EDITORS

The IPPR paper, The Road to COP26 by Luke Murphy and Carsten Jung found that the government was only investing 12 per cent of what is needed to tackle the climate and nature emergency. The report, published earlier this month, is available for download at: https://www.ippr.org/research/publications/road-to-cop26
IPPR previously detailed the job creation potential of green investment in the report Transforming the Economy after Covid-19 available here: https://www.ippr.org/research/publications/transforming-the-economy-after-covid19
The IPPR Environmental Justice Commission was established last year to develop the ideas and policies to bring about a rapid green transition that is fair and just. It is putting people at the centre of its work, by holding deliberative democracy events and citizens juries in diverse locations to draw on local knowledge, experience and wisdom.
It is chaired by Laura Sandys, Hilary Benn MP and Caroline Lucas MP. They are joined on the commission by leading figures from business, academia, civil society, trade unions, and youth and climate activism. Find out more about the commission here: https://www.ippr.org/environment-and-justice
IPPR is the UK’s pre-eminent progressive think tank. With more than 40 staff in offices in London, Manchester, Newcastle and Edinburgh, IPPR is Britain’s only national think tank with a truly national presence. www.ippr.org