UK net zero strategy must allow people to make money

The UKʼs net zero strategy should allow investors to turn a profit; the sustainable finance industry cannot thrive on the feelgood factor alone, experts told the Innovate Finance Global Summit (IFGS) 2025.

Katherine Wilson, investment director at venture capital group Illuminate Financial, said: “[Net zero] has got to be about money; money will flow where money is big. The opportunity for net zero is that you can make money in it, that’s the only thing moving venture investors like me.”

Wilson believes the UK needs a “healthy, functioning carbon market” to achieve its net zero goals. Boosting confidence in these markets, would give businesses —including farmers and land managers — “major economic benefits”, such as revenue opportunities and job creation, she said. “This kind of transformation has the power to motivate people, not just because itʼs good for the planet, but because itʼs good for their livelihoods.”

According to the UK Department for Energy Security and Net Zero (DESNZ), carbon markets could be worth up to $250 billion and nature markets $69 billion by 2050. However, voluntary carbon markets (VCMs) are not without their critics and issuance actually shrank in 2024, according to the advisory group Climate Focus.

Do the math

It is still important for the sustainable sector to “do the math right”, from cost calculation to carbon pricing. Dr Enass Abo-Hamed, co-founder of clean energy storage company H2GO, explained: “If we do the math properly, we can better understand the true cost. You can make profit today but you could also make losses in a few yearsʼ time and, combined, that could be less profit.”

The Confederation of British Industry (CBI) report on tax and green investment explored commercialisation of sustainable finance. According to the trade body, green businesses in the UK generated £83 billion in gross value added in 2024. By addressing existing gaps in the UK tax system, the CBI believes tax policy can directly increase green investment, supporting the fight against actions harmful to the environment.

Politics and green strategy

The UK government is legally obligated to decarbonise the entire economy by 2050, following legislation introduced in 2019 by then prime minister, Teresa May. Both the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are required to “have regard” to this 2050 commitment when drafting or amending their rules.

Against this backdrop, regulatory frameworks remain important, according to Kerstin Mathias, director of policy and innovation at the City of London Corporation. Speaking at IFGS 2025, she said the UK government should address its net zero strategy holistically by supporting the developments of new markets beyond low-carbon energy alone.

The UKʼs sustainable strategy should also be “coherent” and aligned itself with the International Sustainability Standards Board (ISSB), said Mathias. She urged the government to set up industry task forces specialising in sustainable finance.

Currently, the non-departmental public body Climate Change Committee (CCC) is responsible for providing advice to the UK government, while the Met Office’s Local Authority Climate Service (LACS) supports decision-making and climate adaptation planning among local authorities.

Both Mathias and Illuminate’s Wilson reported seeing increasing politicised climate risks and regulators looking at sustainability through this political lens. This leads to greater fragmentation in political commitment, which puts sustainable finance firms in a more complex environment, they said.