To achieve net-zero emissions by 2050, private investment in the UK must surge by two-thirds, according to a new study, with existing policies insufficient for the UK to meet its climate targets.
Of the world's top eight economies, the UK is projected to experience the most sluggish growth in low-carbon electricity production by 2030, according to research by Oxford Economics funded by trade association Energy UK.
Lower investment is seen as playing a crucial role in this.
The study said Downing Street needed to establish better incentives to spur investor interest and fuel further technological innovations in the energy sector.
The research presented various pathways to net zero, with one scenario potentially elevating the UK's GDP by £240 billion or 6.4% by 2050 against current benchmarks.
Amplifying current levels of investments could also enhance productivity and decrease costs, as proved with the falling costs of solar and offshore wind sectors in recent years.
If the government continues to kick the issue into the long grass until the 2030s, this could disincentivise private sector investments and limit economic growth, the report said.