Low-carbon UK attracts billions more FDI

New foreign direct investment worth almost £10 billion is to be made in low-carbon sectors of the UK economy, Prime Minister Boris Johnson announced on Tuesday.

David Sapsted

19 October 2021

The 18 deals are expected to create about 30,000 jobs and reflects the fact foreign investors are realising "the massive potential in the UK for growth and innovation", according to Mr Johnson.He announced the £9.7 billions-worth of investment at the opening of the Global Investment Summit in London, which attracted more than 200 business executives from across the world and represented a curtain-raiser to the COP26 climate summit, which gets underway in Glasgow in two weeks' time.

Top global investment firms

Delegates at the conference at London's Science Museum included representatives from Blackrock, the world's largest investment firm; from JP Morgan, America's biggest bank; and from such energy giants as EDF.The conference featured a panel discussion, chaired by Mr Johnson, which included discussions with Microsoft co-founder Bill Gates on the role of private companies in tackling climate change.Foreign investments announced by the government were in sectors such as wind and hydrogen energy, sustainable homes and carbon capture.

Scottish Power owner Iberdrola invests £6 billion

By far the largest slice of the new money will be coming from Spanish energy firm Iberdrola, which owns Scottish Power and which is ploughing £6 billion more - on top of £10 billion invested over the past five years - in offshore wind projects.The company's latest investments are expected to create about 7,000 jobs at its East Anglia hub, which already operates offshore wind farms off the Suffolk coast.

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New net-zero warehouses for the UK

Meanwhile, global logistics company Prologis is to invest £1.5 billion over the next three years, developing net-zero warehouses across London, SE England and the Midlands, creating some 14,000 new jobs.Hamid Moghadam, Prologis CEO, said: "We believe private sector innovation has, and will continue to play, a major role in overcoming the environmental challenges the world faces today."

Investments will create thosands of new jobs in the UK

Additionally, grocery service company Getir is to step up investment across the UK, creating 7,000 jobs, and the Ultimate Battery Company is to spent £28 million on a UK plant making eco-friendly batteries.Mr Johnson said: "The fantastic £9.7 billion of new investment we have secured today will power our economic recovery, creating thousands of jobs and helping to level up across the country."This is just the start. We will see new partnerships for green growth forged at today’s Global Investment Summit, as we look ahead to COP26 and beyond."