A greener type of export: clean growth

Take a trip around the United Kingdom and you won’t just see ‘green and pleasant lands’. You’ll also spot evidence of a country committed to Clean Growth: windfarms gracefully spin above windswept bays, while solar panels harness energy across the UK. Behind the scenes, technology and data drive industry and progress towards Net Zero.

The UK is a pioneer in this space. It was the first of the G7 countries to legislate a net zero emissions target by 2050, and the UK’s 2008 Climate Change Act, with its five year caps on carbon emissions, was adopted by the UN’s Paris Agreement as a possible solution to the climate crisis. After being one of the first countries to industrialise back in the 19th century, the UK is now among the first to start looking for clean, innovative solutions and alternatives to goods, services and technologies. What’s more, the UK also has a government export credit agency (ECA), the UK Export Finance (UKEF), which offers guarantees, insurance and loans as financial support to UK businesses that are considering clean-energy solutions.

Clean Growth is one of the UN’s sustainability goals and a keen area of focus for the UK. The UK has reduced emissions faster than any other G7 nation, they’ve cut emissions by 42 percent since 1990, while their economy grew by two thirds. But there’s more to be done: it’s estimated that the planet needs between $57 trillion to $93 trillion investments in low-carbon, climate resilience infrastructure by 2030 if the planet is to achieve its Net Zero goal. 

In the same way the UK has adopted Clean Growth to move towards a Net Zero future, other regions are looking to achieve the same. Latin America in particular, with its sun-drenched deserts, windy Pacific coastlines and surging Andean rivers is particularly well-placed to benefit from investing in green technologies. The IFC has assessed the availability of clean energy opportunities in Brazil, Chile, Colombia, Mexico and Peru: findings revealed 88 percent of available investment potential by 2030 is for renewable energy. In addition, with a significant and growing urban population (80%) and an already embedded reliance on hydropower (45%), Latin America and the Caribbean (LATAC) are primed for further expansion into Clean Growth. The UK’s Department for International Trade (DIT) works across the region hand-in-hand with the UK’s diplomatic network, matching LATAC demands with the UK offer, in a range of areas.

Infrastructure

Sustainable infrastructure is vital for global clean growth and the UK can offer expertise across the sector. To understand how to tackle infrastructure, and develop clean growth opportunities, it’s critical to acknowledge that buildings (through construction and the energy to heat, cool and light them) account for 40% of annual global greenhouse gas emissions. Addressing this situation is vital. A recent report by the Carbon Trust states that by 2050, 38% of savings in CO2 emissions will come from energy efficiency programmes. LATAC shows clear interest in becoming a world-leader in energy efficiency. Quimera Energy Efficiency is one such company tackling building emissions through retrofitting sustainable solutions. Their technology optimises energy consumption of a building helping to reduce energy consumption and carbon emission.  

 The UK’s construction sector is worth $1.6bn and frequently engages with organisations that promote green growth and sustainable construction techniques such as the UK Green Building Council. This institute works with policy makers, developers and designers to use low-carbon materials during construction processes. 

Significant investment in the start-up sector, and a belief in the power of entrepreneurialism, has encouraged UK SMEs to develop technology, such as the application of data analytics to scale tools such as urban streetlighting, smart buildings, heating systems and intelligent transportation. 

As part of its expertise in sustainable infrastructure, the UK has led on significant projects, including those currently being carried out at the G2G level by the UK in Peru. There, the UK has been selected as the delivery partner to support two G2G infrastructure programmes worth over £2bn. Through these programmes, UK companies are providing technical assistance to Peru to support the rebuilding of crucial facilities, such as schools and hospitals, which were affected by El Niño in 2017.