The Formation of Great British Energy (GBE)
Great British Energy is a publicly owned power company based in Scotland, launched with an initial £8.3 billion capitalisation through the Great British Energy Bill. This bill marks the first step towards a net zero electricity system by 2030, co-investing in clean power technologies. GBE will predominantly focus on low-carbon energy technologies, including floating offshore wind, tidal, nuclear power, and hydrogen, leveraging the UK's natural advantages—such as long coastlines, high winds, shallow waters, and a skilled workforce. The creation of GBE is a promising move, signalling the new Labour government’s commitment to energy transition and net zero policies, second only to economic growth. We at Zeti support this initiative, as it should lower the cost of capital for clean technologies like CCUS (Carbon capture, usage and storage), attracting investors and speeding up their large-scale deployment. GBE can lead the way in advancing energy projects in less mature markets, helping to draw private investment, thus accelerating the development and implementation of these critical technologies.
National Wealth Fund (NWF)
The Labour government has established the National Wealth Fund with £7.3 billion in public capital to mobilise private investment for a low-carbon economy. Managed by the UK Infrastructure Bank (UKIB) and chaired by the Green Finance Institute (GFI), the NWF aims to attract £3 of private investment for every £1 of public funding. Over the past three years, the UKIB has committed £3.3 billion, unlocking approximately £11 billion in private investment. The NWF will prioritize projects in five sectors: green steel, green hydrogen, industrial decarbonization, gigafactories, and ports. Zeti supports the NWF's focus on catalytic capital to scale up low-carbon technologies and suggests exploring investments in advanced battery technologies and energy storage solutions. Labour hopes these projects will also boost pension fund investments in UK infrastructure. Of the £7.3 billion, £1.5 billion is allocated for gigafactories, £1.8 billion for ports, £1 billion for carbon capture, and £500 million for green hydrogen. The NWF is set to drive economic transformation, with ESG principles at its core, and will become a permanent institution through government legislation.
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