The UK has a unique opportunity to position itself as a leader in the global green economy. By embracing the Net Zero transition as a catalyst for growth and innovation, the UK can build a more prosperous, resilient, and sustainable future. This requires bold leadership, strategic vision, and a commitment to unlocking the full potential of regional devolution and public investment, writes Dimitri Zenghelis.
This report discusses the UK’s transition to Net Zero as an opportunity for economic growth rather than a financial burden. It posits that pursuing Net Zero can drive innovation, efficiency, and prosperity by leveraging the UK’s strengths in science, technology, and finance to tap into emerging green markets. A proactive approach will allow the UK to gain a competitive edge in the global green economy, similar to China’s dominance in renewable energy and electric vehicles, with a focus on sectors like floating offshore wind and green hydrogen.
Lead author, Dimitri Zenghelis suggests reforming fiscal rules to differentiate between consumption and productive investment, arguing that borrowing for Net Zero initiatives is fiscally responsible and can enhance national wealth.
He criticises traditional cost-benefit analysis for large-scale initiatives, recommending a “Risk-Opportunity Analysis” that considers technological advancements, social psychology, and geopolitical trends. Additionally, it emphasises the importance of localised investment decisions and increased fiscal autonomy for regions to tailor solutions to community needs, maximising social benefits and fostering citizen engagement.
The report recommends establishing a credible policy strategy with long-term targets, encouraging government-led investments in infrastructure and skills, creating a coherent growth strategy that integrates Net Zero with AI and digitisation, enhancing HM Treasury’s analytical capacity, and empowering regions with greater control over investments and resources.
In conclusion, the UK has a significant opportunity to lead in the global green economy; embracing the Net Zero transition can foster a prosperous and sustainable future, requiring bold leadership and strategic vision.
News release: UK budget blindness hands green economy future to China, argues report
