Greenpeace UK’s Post

What is the national wealth fund and what will it invest in? https://lnkd.in/eXXyg_Ar #uk #infrastructure #investment #economicpolicy #gigafactories #ports #hydrogen #carboncapture "..the NWF is meant to boost investment in key industries while giving investors the confidence to park money in the UK by showing that the government is willing to share the risk of pouring cash into long term infrastructure projects."

https://lnkd.in/eU27nM8J Very quick movement by the new Government in the UK, hopefully it can provide a strong pipeline of new Infrastructure Projects in the coming years

Today saw the launch of a £7.3bn National Wealth Fund (NWF) by the UK's new #Chancellor Rachel Reeves to attract private investment in UK #infrastructure. In a nutshell: • This £7.3 billion NWF will attract private sector funding for major infrastructure projects across the UK; • NWF aims to secure £3 of private investment for every £1 of public money and will focus on sectors such as #ports, #gigafactories, #hydrogen, and #steel production; • The Chancellor emphasised the UK's stability, with a clear mandate for the new #Labour government, as an advantage in attracting investment amid uncertainties in other countries, such as France with its hung parliament and USA with its upcoming presidental elections. All this sounds promising for UK infrastructure. Source: 👇🏽

Rachel Reeves Initiates £7.3 Billion National Wealth Fund: A Comprehensive Overview UK’s Path to Prosperity In a bold move to bolster UK infrastructure projects, Chancellor Rachel Reeves is launching a £7.3bn National Wealth Fund (NWF). The fund is designed to draw private investment, aiming for a £3 private to £1 public investment ratio. The NWF, under the stewardship of Reeves, will serve as a beacon for UK investors. The fund’s management will be handled by the UK Infrastructure Bank and the British Business Bank, a fact announced during a meeting with City executives. Over the past several months, the Labour party has been diligently crafting the NWF. A taskforce was assembled in March to fine-tune its implementation, making it a cornerstone of the party’s manifesto in the recent election. The National Wealth Fund (NWF) and GB Energy, two leading public entities in the UK, are poised to transform the green energy landscape. GB Energy is dedicated to producing low-carbon energy, while the NWF is strategically investing in vital infrastructure such as ports, gigafactories, clean steel, carbon capture, and green hydrogen. Soon to gain official recognition under UK law, the NWF is set to become a cornerstone of the nation's economic future. Stay tuned for more insights, ...

How might more institutional capital be mobilised towards low-carbon #solutions? Co-chair of Snowball leadership council Rhian-Mari Thomas OBE (CEO of the Green Finance Institute) chaired the task force recommending the newly announced National Wealth Fund. The fund will provide catalytic capital to new innovation and green prosperity. The task force estimated the UK could need as much as £57bn by the end of the decade from private and public sources to achieve industrial decarbonisation goals. https://lnkd.in/g6hs5Ggg British Business Bank UK Infrastructure Bank #CatalyticCapital #ImpactInvesting #WorldChangingReturns

Creating long-lived, #sustainable assets forms the basis of the social contract underpinning #infrastructure investing. To the point where finite fund life is often downplayed because everyone is supposedly investing with a long-term mentality. As the crisis engulfing Thames Water deepens, it's increasingly evident that public and private actors failed to give sufficient thought to how certain decisions, made at certain points in time, could act as a long-term straitjacket on Thames’ ability to adapt to changes in the macroeconomic regime, the growing pressures of #climatechange, a need to invest more and evolving regulatory requirements. Read my take on why that matters and its consequences on Infrastructure Investor 👇

#Moloch just got stronger. Global Infrastructure Partners (GIP), which boasts a $100bn (£79bn) collection of companies including Gatwick airport and the Suez wastewater group, has been sold to the US investment firm BlackRock in a $12.5bn deal. More of Britain sold off to another of the tiny cliques that run the world. #Blackrock. The irony, of course, is that Britain left the EU under the pretext of "Taking back control" – when Brexit was funded by a clique of powers that now own Britain's infrastructure, its power, its water, its land... A series of nested deals in which the political class either profits or ensures that the law is such that private corporations with whom they are associated will profit. The real meaning of #takebackcontrol is to throw out all these corporations, with their financial shenanigans, the stranglehold that they have on most countries. This is #Moloch. Sadly, in the elections to come in the UK, we have two main parties and it is #Moloch on the A-side, and #Moloch on the B-side. Which suggests we have to #takebackcontrol for ourselves. We have to do things differently.

We’re so pleased to have signed a Memorandum of Understanding with the Department for Business and Trade as part of our intention to invest £10 billion in the United Kingdom by 2027. IFM Investors is owned by Australian ‘super funds’ that manage the retirement savings of millions of working people and are looking to invest in the UK economy. The objectives of the MOU are to drive IFM’s investment in the UK across large-scale infrastructure and energy transition projects by working with the government to identify commercially viable opportunities for investment. The MOU also intends to facilitate collaboration between IFM and UK Government departments to provide greater understanding of policy priorities and the ongoing development of the infrastructure and energy transition sectors. As very long-term investors, we and our owners recognise the investment imperative of meeting public expectations. Our Chief Executive David Neal says, “We’re proud to have signed this MOU and we look forward to working closely with the Government to help drive investment into large-scale infrastructure and energy transition projects. Partnerships between governments and long-term investors are necessary to unlock the potential of pension funds to invest to help mitigate system-level risks such as climate change.” You can read more about the MOU announcement here: https://ow.ly/pj6P50QbmSe #UKinvestment #GIS2023 #IFMInvestors #energytransition

The Macquarie model Thames Water acquired in 2007 for £3.4bn in debt £4.9bn taken back out over next 10 years sold on in 2017 on with debt now up to €10.8bn 2024 - over leveraged, cannot raise new finance or service existing debt, facing pollution fines and pension defeit, and now going to be re-nationaised. Totally open to be corrected here but; suggest emphasises the importance of robust economic regulation for key infrastructure? Infrastructure regulators often get a lot of flak but suggest the importance of the job they do cannot be over-emphasised "By the time Macquarie sold its final stake in Thames Water in 2017, the company had spent £11bn from customer bills on infrastructure. But far from injecting any new capital in the business — one of the original justifications for privatisation — £2.7bn had been taken out in dividends and £2.2bn in loans, according to research by the Financial Times. Meanwhile, the pension deficit grew from £18mn in 2006 to £380mn in 2017. Thames Water’s debt also increased steeply from £3.4bn in 2007 to £10.8bn at the point of sale" #eng4climate Engineers Ireland Irish Academy of Engineering What next for Thames Water? - https://on.ft.com/3IWnge7 via @FT

Thames Water: B and A tranches are both at risk of taking total or significant writedowns. Given the size of under investment, the question for Ofwat is how much equity is required to maintain leverage around the 55% target level.