The head of the UK Sustainable Investment and Finance Association (UKSIF) has raised concerns about policy barriers hindering the growth of renewable energy projects, as 2024 has been reported as the warmest year on record.
James Alexander, CEO of UKSIF, highlighted the urgency of shifting the financial system towards decarbonization. “The financial system must rapidly transition away from activities that accelerate climate change, and towards those that decarbonise,” he said. However, he emphasized that the transition is being hampered by regulatory obstacles. “Yet every week we encounter investors who have faced policy barriers like planning permission and grid connections which prevent them from investing in otherwise viable renewables projects.
The comments come after Copernicus, the Earth observation service of the European Union, reported that 2024 marked the first year in which global average temperatures surpassed 1.5°C above pre-industrial levels. The report also noted that sea surface temperatures remained exceptionally high, with the period from July to December 2024 being the second warmest on record for that time of year, following 2023.
Alexander stressed the need for immediate action from policymakers, stating, “The sustainable transition is the economic opportunity of the century, but only if policymakers urgently remove these barriers.
