Analysis from LSE and University of Cambridge shows a yearly investment of £26bn is needed to tackle the UK environmental threats.

An investment into the green economy of around one percent of GDP each year is needed to address the climate and biodiversity crisis.

Published today, the report warns continued low levels of public investment into green assets will undermine the UK’s competitiveness and likely lead to further economic stagnation.

Citing that “too much current investment continues to be in the sustainable economy,” which incurs the risk of “creating stranded assets, significant financial losses in polluting and emissions-intensive sectors, and an insecure, unaffordable and unsustainable energy supply.

“It will also mean that the UK fails to adequately tackle climate change, biodiversity loss and environmental degradation, including water and air pollution.”

The analysis calls for a “coherent set of public policies” to address the UK environmental challenges.

Lead author of the paper, Dimitri Zenghelis says: “Evidence suggests that [such an uplift in public investment], after more than a decade of underinvestment, gives the UK the best chance of staying in, and possibly ahead of, the global innovation, efficiency and productivity game.”