Net zero investment has the potential to drive economic growth and help the government regulate its level in poorer areas with lower productivity in the UK, a study has found.
The report, titled Grows clean And published Monday by the Resolution Foundation and the London School of Economics Green investment Can contribute to Britain’s future prosperity and help reduce regional inequality.
Based on patent data analysis, he showed that the highest share of green patents was in lower productivity areas, such as Tees Valley And Durham, Derbyshire and Nottinghamshire. This is despite the fact that innovation overall is concentrated in richer areas including Oxford, Cambridge and London.
The study, funded by the Nuffield Foundation, reported that less productive areas tended to be more specialized in producing clean goods and services because they had a higher rate of green businesses, on average, than other areas.
“This analysis indicates a doubling Net zero capabilities “In the UK, as part of a coordinated growth policy, it may be consistent both in driving growth and in tackling regional disparities in economic activity,” it said.
The UK is not yet a green technology superpower as it ranks only 14th in clean technology patents overall, the study added. However, the country enjoys a comparative advantage over other advanced economies in a number of key technologies – mainly tidal power, marine wind and carbon capture and storage – as well as green funding.
For some of these technologies, especially tidal energy and offshore wind, the report estimated much higher returns than in other sectors.
The report comes as the Center for Policy Studies, a thinking team in the UK, found in a focus group of business leaders that while the UK remained an attractive investment destination, it lost ground to its European counterparts, many of whom were more successful.
The investment needs for zero net are large and require major changes in the economy. The Climate Change Commission has estimated that an additional £ 13.5 billion investment will be needed in 2022, which will rise to more than £ 50 billion a year by 2030, to meet the UK’s net zero targets. Net zero refers to the desire not to add to the amount of greenhouse gases in the atmosphere by 2050.
The Resolution and LSE Fund report warned that the required innovation would not occur at the required scale and pace without incentives, regulation, government spending and participation from civil society.
“The UK already has some key strengths in clean technology, from tidal and coastal winds, to carbon capture and green funding,” said Anna Valero, a senior policy fellow at the Center for Economic Performance at the LSE.
With much of the technological potential associated with traditionally low-productivity areas, such as the East Midlands and the North East of England, “the government should prioritize leveraging these strengths as it aligns its ambitious net zero agenda with a new 2020 economic strategy.”
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