Jakarta, INTI - Britain’s National Wealth Fund announced on Wednesday that carbon capture, electricity grid infrastructure, and battery manufacturing are among ten priority sectors it plans to support over the next five years as part of efforts to revitalise the country’s underperforming economy.
Chief executive Oliver Holbourn said the fund aims to invest between £4 billion and £5 billion annually in projects through 2030/31, a level of funding expected to create or sustain around 200,000 jobs.
“We’re going to go faster and in a more focused way,” Holbourn told reporters on Wednesday as the fund published its five-year strategic plan.
Labour Government Struggling In The Polls
Established by the current Labour government in 2024 to stimulate economic growth and support the UK’s transition to net zero, the National Wealth Fund is designed to provide debt and equity financing for projects in sectors such as clean energy and transport, working alongside private investment partners.
Prime Minister Keir Starmer’s administration has yet to deliver a strong economic turnaround and continues to face challenges in public opinion, increasing pressure on initiatives like the NWF to help reignite economic momentum.
According to Holbourn, the fund’s core focus areas include ports, nuclear power, energy storage, and green steel, while also remaining open to investments in defence, advanced materials, and critical minerals. These investments are intended to reinforce domestic supply chains and improve the UK’s economic self-sufficiency.
Fund Has About 28 Billion Pounds To Invest
Previously operating as the UK Infrastructure Bank before 2024, the National Wealth Fund is government-owned but functions independently. It has roughly £28 billion available for investment, with around 30% already committed to approximately 70 projects. Holbourn noted that the fund’s targeted returns have not been publicly disclosed.
So far, the fund has invested in the UK’s new nuclear power plant, Sizewell C, which is currently under construction, and has provided a £600 million loan to Iberdrola-owned ScottishPower to support upgrades to the national power grid. In addition, the fund has issued a financial guarantee backing SSEN Transmission’s grid modernisation plans.
Conclusion
The UK’s National Wealth Fund represents a strategic effort to stimulate economic growth while supporting the country’s transition to net zero. By investing in sectors such as clean energy, nuclear power, energy storage, and advanced infrastructure, the fund not only aims to create or sustain thousands of jobs but also strengthens domestic supply chains and enhances the UK’s long-term economic self-sufficiency. Its independent management and targeted investments, including major projects like Sizewell C and power grid upgrades, position the fund as a key tool for driving sustainable growth and technological development over the next decade.
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