The Association of British Insurers (ABI), the insurers body, has set out potential areas for investment, including a significant number of green projects.

Its report from the Investment Delivery Forum states: “The insurance and long-term savings industry stands ready to channel significant investments into infrastructure projects that will drive the UK’s clean energy transition.”

It cites, as an example, the Electric Vehicle Infrastructure Strategy, and the estimated £20bn required to build the 300,000 additional EV public charge points with 65 per cent of construction costs are being funded through public grants, with little or no access to debt finance for most charge point operators.

Forum members have worked with the GFI to design a proposed solution: the Green Road Transition Fund (GRTF), by blending well understood project finance techniques with targeted public support, the GRTF could save the taxpayer £13bn of sunk costs.

In this scenario, the Government could deliver a £20bn nationwide charging infrastructure for under £1bn over a 15-year period, while delivering steady returns to UK insurance and pension funds in a new asset class.

The report also mentions the Net Zero Neighbourhoods model developed by The Cities Commission for Climate Investment (3Ci) and windfarm developments as other areas for investment.

The ABI’s Investment Delivery Forum will start reporting and tracking from next year, with the remainder of 2024 earmarked for refining and testing, and the aim of investment into “UK green and good projects” from the start of 2025.

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