Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to make investment in energy infrastructure more attractive for pension funds.

The government is attracting tens of billions of private investment into energy infrastructure from a wide variety of sources. Autumn Statement 2023 announced planning and grid reforms which could bring forward £90 billion of investment in energy infrastructure over 10 years, and since September 2023 alone companies have announced plans for £30 billion of new energy investment.

Autumn Statement added to the significant progress government has already made in creating the right enabling environment for infrastructure in decarbonization, as set out in Powering Up Britain. This includes:

- Innovative financing mechanisms and business models to provide revenue support and long-term certainty for investors in green industries, including Contracts for Difference (CfDs) for renewable energy generation, Regulated Asset Base (RAB) for nuclear, and models for CCUS and hydrogen.

- A strong public finance offer, including the £22bn in financial capacity in the UK Infrastructure Bank (UKIB) which enables it to partner with the private sector and government to increase net zero infrastructure investment.

Spring Budget 2024 delivers and builds on announcements from Autumn Statement, creating the enabling environment for net zero investment through energy system reforms. This includes:

- Confirmation of the parameters of the 6^th Contracts for Difference (CfD) round for offshore wind, with the largest ever budget set at £1 billion.

- Seizing the growth opportunities of the net zero transition, with an additional £120 million for the Green Industries Growth Accelerator targeted at manufacturing capacity in the clean energy sectors where the UK has the strongest current or potential advantage: CCUS, hydrogen, offshore wind, networks, and nuclear. This brings overall funding for the Green Industries Growth Accelerator to over £1 billion.

- The pensions reforms currently being developed by the Government, Financial Conduct Authority and The Pensions Regulator, which will also help ensure that pension funds are investing in the full range of asset classes including infrastructure.