Chancellor’s National Wealth Fund unlocks £70bn to deliver clean energy

• Money will be invested across the UK in projects, such as carbon capture
• It will also help encourage direct investment to industries the defence sector relies on
•  investing in homegrown clean energy industries is essential

The National Wealth Fund has added more than £70bn in private investment to help make the UK a “clean energy superpower”, as well as strengthen the defence sector and deliver economic growth. 

According to chancellor of the exchequer, Rachel Reeves, the new strategic directions set clean energy, advanced manufacturing, digital technologies and transport as its priority for the National Wealth Fund. 

Reeves said there will be big investments made in green projects, such as carbon capture, green hydrogen, gigafactories, green steels and ports. 

“My number one mission is kickstarting economic growth through our Plan for Change to make Great Britain a stronger, more resilient country and put more money into the pockets of working people,” Reeves said. 

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The National Wealth Fund  will also help encourage direct investment to the industries that the defence sector relies on, such as advanced manufacturing and digital and dual-use technologies. 

Reeves and the government will work with the industry to “keep Britain safe” and build on the government’s commitment to increase spending on defence and national security to 2.5% of GDP from April 2027. 

Currently, the National Wealth’s Fund economic capital limit is £4.5bn, and will be increased to £7bn, allowing it to take on greater risk and invest in more green projects that don’t have access to private finance. 

“I am determined to go further and faster to get our economy growing,” Reeves explained. “By directing tens of billions of pounds into the UK’s industrial strengths, we’ll deliver the high-skilled, high-paid jobs of the future in every corner of the country.” 

What impact has the National Wealth Fund had?

Since July 2024, the Fund has created almost 10,000 jobs and nearly £1.8bn of private investment in growth-driving industries, like green energy and technology. 

Investments into the green sector have already happened, including £55m for Connected Kerb to increase coverage of electric vehicle (EV) charging networks and a £28.6 million investment into Cornish Metals. 

Reeves’ steer comes as a new £9.6m investment was announced for Solihull Council to improve the area’s heating infrastructure and reduce bills. This will be achieved by providing low carbon heating, hot water and power to town centre buildings. 

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The future of the National Wealth Fund strategy

John Flint, the current CEO, will step down in the summer after seeing through the Fund’s transition from the UK Infrastructure Bank.

As a result, the government has launched a recruitment campaign for the Fund’s next CEO. 

Reeves will also establish a new UK Strategic Public Investment Forum joining up the UK’s leading policymakers and public financial institutions, including the CEOs of the Fund, British Business Bank, UK Export Finance, Homes England, Innovate UK, Great British Energy and The Crown Estate. 

The forum, which is the first of its kind, will cooperate on delivering investments to the priority areas, set out by the chancellor and will be tasked with ensuring the government is getting maximum impact for its investments. 

Stemming from this, the National Wealth Fund will work with Great British Energy to support its quick establishment as a publicly-owned clean energy company that aims to boost Britain’s energy security, making it a clean energy superpower. It also aims to lower bills, create jobs and grow the economy. 

Ed Miliband, secretary of state for energy security and net zero, said that investing in homegrown clean energy industries is an “essential part” of the government’s drive to replace the UK’s dependency on fossil fuel markets controlled by petrostates and dictators with clean, homegrown power. 

He described clean power as “the economic opportunity of the 21st century” and that the government will use  the National Wealth Fund to “seize this opportunity to invest in British industries and workers”. 

The Great British Energy developer mandate

The partnership with the National Wealth Fund will see Great British Energy bring project development expertise to green energy initiatives, as well as investment, with the Fund providing finance. 

Harnessing private investment via the National Wealth Fund, according to Miliband, is part of the government’s wider efforts to kickstart economic growth and deliver a new era of security and renewal through the Plan for Change. 

Cutting red tape to allow for major infrastructure projects to progress, as well as removing unnecessary hurdles in the planning system so more homes can be built, are all part of the work being undertaken to grow the economy. 

This also includes progressing new economic partnerships with international partners, like Japan and India, according to Miliband. 

Written by

Tamara Birch Senior writer

Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.

She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs.

In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.

Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.

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