Source · Select Committees · Environmental Audit Committee
Recommendation 21
21
Accepted
Paragraph: 127
Progress in developing blended finance models for net zero projects is welcomed.
Conclusion
We welcome the Government’s progress in developing blended finance models for net zero projects, in particular the work of the UK Infrastructure Bank (UKIB) which, according to the evidence given to us by the Minister, has created around £4 of private capital for every £1 of public funding invested. Such models are valuable for de-risking and stimulating investments in emerging technologies that may help the UK achieve its net zero target. We therefore welcome the Government’s continued work with the Green Finance Institute in this area and its timely goal of drawing conclusions in advance of the next spending review.
Government Response Summary
The government highlights the recently announced Net Zero Blended Finance Project (November 2023), which aims to improve government capacity and explore innovative blended finance approaches to mobilise private sector investment for net zero technologies, working with the UK Infrastructure Bank.
Paragraph Reference:
127
Government Response
Accepted
HM Government
Accepted
In November 2023 we announced the Net Zero Blended Finance Project. The project aims to improve the capacity and expertise of the Government to explore innovative blended finance approaches in funding designs for net zero technologies, mobilising additional private sector investment to support the UK’s transition to net zero. The project will consider how best to target blended finance approaches to address investment gaps as appropriate, and this will include working closely with UK Infrastructure Bank alongside other public finance institutions. As this work develops, we will consider how best to keep the market informed.