mazzucato60_Sean GallupGetty Images_germanysteel Sean Gallup/Getty Images

There Is No Alternative to Green Industrial Strategy

While many countries forge ahead with plans to ensure industrial competitiveness in a world that is committed to net-zero emissions, the United Kingdom remains a laggard, with politicians from both major parties backpedaling on previous promises. Such floundering is bad for both the planet and the economy.

DUBAI – With the COP28 climate summit now wrapped up, the spotlight remains firmly on the global financing gap. It is estimated that achieving the 2030 Sustainable Development Goals (SDGs) will require a staggering $5-7 trillion per year. But not only must we urgently secure the necessary capital; we also must ensure that long-term patient investments are strategically directed toward ambitious goals. That means coordinating inter-sectoral responses across different supply chains, which in turn requires a robust industrial strategy.

Countries around the world are doubling down on plans to revitalize their industrial sectors. It is critical that Britain does not lose ground to them. Earlier this year, Chancellor of the Exchequer Jeremy Hunt outlined an ambitious plan to position green industries as the engines of long-term growth. Strongly encouraging green businesses to ramp up their investments, he set an optimistic tone. Conservatives and Labour must act to ensure investors confidence in the stability of UK policy, so that projects with a life of decades are not vulnerable to uncertainty.

The United Kingdom will need a clear, comprehensive vision for sustainable industrial development if it is to reap the economic opportunities presented by a world that is increasingly committed to achieving net-zero emissions. As the Independent Review of Net Zero warns, inconsistent policy approaches are bad not only for the planet, but also for business. After all, green industries could be worth more than $10 trillion globally by 2050.