National Wealth Fund adds more than £100bln to UK economy
The investment is into companies, infrastructure and supply chains to unlock growth for 'greener', more resilient future.
In its new strategic plan, the Fund sets out how its investments will create and support more than 200,000 jobs and aim to save 500Mt of CO2e greenhouse gas emissions by 2050.
The National Wealth Fund’s activity is rooted in three new strategic ambitions:
- Unlocking growth opportunities on the pathway to clean energy by accelerating investment into the most critical projects.
- Accelerating place-based investment across all four nations of the UK by providing financing and expert advice to regionally significant projects.
- Strengthening sovereign and strategic capabilities by investing in growth opportunities underpinning the UK’s national security.
To achieve these ambitions, the National Wealth Fund will be adopting a more targeted approach, focusing on Industrial Strategy sectors and Infrastructure Strategy priorities, where it can make a difference.
The following 10 sectors have been identified where the Fund expects to have the most catalytic opportunities over the next five years:
- Ports and supply chains*
- Power grid
- Carbon capture, usage and storage*
- Energy storage
- Hydrogen*
- Nuclear
- Battery manufacturing and the electric vehicle supply chain*
- Transport infrastructure
- Steel*
- Place-based regeneration
* In these sectors, the National Wealth Fund will aim to commit £5.8bln collectively over this strategy period, subject to investable propositions and progress on supporting policy.
This is alongside a further 15 sectors in which it will pursue investment opportunities that target high growth, innovative projects and businesses and accelerate the delivery of core infrastructure:
- Artificial Intelligence
- Water
- Semiconductors
- Offshore wind
- Quantum technologies
- Retrofit
- Defence
- Solar
- Advanced materials
- Heat networks
- Life sciences
- Electric vehicle charging
- Critical minerals
- Aerospace supply chain
- Sustainable aviation fuels
Through its investments, the National Wealth Fund will pursue opportunities to address market weaknesses and crowd in private finance.
To date, the National Wealth Fund has committed a third of its capital, mobilised more than £17bln of private investment and created or supported more than 70,000 jobs.
