The UK Sustainable Investment and Finance Association (UKSIF) has asked the government to provide greater clarity on the country’s long-term strategy to decarbonise the transport industry. This is necessary to improve investor confidence and unlock growth opportunities for the sector, UKSIF said. The body referred to incentivising international policies such as the US Inflation Reduction Act as an example of easily identifiable rules of engagement for investors, noting the UK risked being unable to compete on the global stage for battery production if it did not take action to signpost investment opportunities. Eighty-seven percent of the UK transport sector, representing £150 billion (US$187 billion) in investment, agree that a consistent approach to government partnerships with investors would have a positive effect on investment into the country, UKSIF found. Around 57% of major transport companies said they had or were planning on moving investments out of the UK to a market that is more supportive of their sustainability goals, while only 32% of large UK transport companies expected to meet their intermediary 2030 carbon reduction targets. “A lack of clarity and certainty on the long-term strategy for the automotive sector is destroying investor confidence, driving much needed private capital overseas, and limiting necessary progress on the decarbonisation of the transport sector,” said James Alexander, CEO at UKSIF.
