The UK faces the risk of falling behind global counterparts such as the US and the EU in the race towards achieving a net zero economy, according to a recent report by the Institute for Public Policy Research (IPPR).
The think tank has recommended that the UK Government increase its green investments by considering an innovative strategy.
The IPPR’s proposal involves the establishment of a “national investment fund” (NIF) that would provide financial support to green businesses.
This support could ensure a stake in potential future profits for the public.
The envisioned approach draws parallels with the popular TV show “Dragons’ Den” where entrepreneurs pitch their business ideas to potential investors.
The IPPR stresses that the NIF could collaborate with current state tools – this means teaming up with state banks and grants to draw more private money for green projects.
The idea is to offer companies financial help in the form of equity or convertible loans if they commit to expanding green manufacturing and reducing carbon-heavy processes.