The government has unveiled the strategic priorities for the National Wealth Fund, striving to use it to drive forward its growth and clean energy missions.
Priority sectors for the National Wealth Fund (NWF) include clean energy, with the Treasury revealing that £5.8 billion is set to be devoted to green hydrogen, carbon capture, gigafactories, ports and green steel over this Parliament. Scope to invest in dual-use technologies and support supply chain resilience is part of the NWF’s expected mandate, alongside the life sciences and creative industries which will align with a forthcoming Industrial Strategy.
The NWF’s economic capital limit is increasing from £4.5 billion to £7 billion in a bid to support additional capitalisation and ensure that it has enough risk capacity to deliver its objectives, with it working towards a target to mobilise private investment at a ratio of 3:1 at a portfolio level. A key emphasis will be crowding into sectors over time and with investments targeting market weaknesses rather than just failures.
As it sets about its work, there will be increased engagement with local leaders, ensuring expertise is being capitalised on to support local priorities and investment needs.
