Climate change and fiscal sustainability: risks and opportunities

The global economy is facing an unprecedented challenge. The response to COVID-19 followed two decades of underinvestment, declining productivity and mounting climate and ecological risks.  

Since the industrial revolution the world has relied on fossil fuel, as a result the green transition is going to affect everyone. Only private finance can match the scale of climate action needed to deliver the net zero transition, estimated to be in the range £3-4tn additional investment a year. To unlock this private capital governments, need to design the credible frameworks and policies to encourage that investment.