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UCL Institute for Innovation and Public Purpose

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Green economy

The UCL Institute for Innovation and Public Purpose (IIPP) works closely with governments all over the world to rethink innovation and take on a market-shaping approach to the climate crisis and the green transition.

We need new ideas, institutions, and policies to avoid catastrophic climate breakdown. Yet markets will not find a green direction alone. Governments have a unique ‘market-shaping’ role to play. Public investment and mission-oriented industrial strategy can galvanise green innovation by holistically shaping new markets, whilst green financial policy can incentivise private capital to align with climate goals in ways that create clear accountability. Through academic research and engagement with high-level policymakers, IIPP is rethinking existing paradigms to articulate how ‘market-shaping’ policy approaches can accelerate the green structural economic transition.

COP27 panel

UCL IIPP calls on world leaders to rethink the role of finance at COP27 

To deliver a just transition to net zero, states must go beyond market-fixing and de-risking and embrace their role as market shapers.

In the 12 months since world leaders gathered in Glasgow for COP26, the task of financing global decarbonisation has become even more urgent. Our reliance on volatile fossil fuels has once again left households and businesses at the mercy of soaring inflation, while fossil fuel producers enjoy record profits. In response, central banks have hiked interest rates to the highest levels in over a decade, while at the same time warning of impending recession. 

Not only will higher interest rates do little to mitigate the underlying drivers of ‘fossilflation’, they also threaten to derail the global energy transition. It is estimated that clean energy-related investment needs to reach $4 trillion annually by 2030 to achieve net zero by 2050, up from around $1 trillion now. However, clean investments are more capital intensive than fossil fuel investments, and are therefore more sensitive to interest rate rises. At a time when scaling up renewable energy is more important than ever, there is a risk that tighter monetary policy will result in destructive ‘green collateral damage’.

Read here for the full IIPP's COP27 Statement

IIPP's COP27 Statement

Click here for the COP27 Statement by the WHO Council on the Economics of Health for All

COP27 Statement by the WHO Council on the Economics of Health for All 

Click here for the second statement by WHO Council - Green financing for good health: common investments for people and the planet

Green financing for good health: common investments for people and the planet

IIPP's COP27 Engagement 

"When will leaders lead?" Professor Mariana Mazzucato moderates high-level COP27 panel 

COP27 event flyer

Our Research

IIPP’s high-impact academic research challenges the dominant narrative that limits the role of the state to de-risking green private investments. Through empirical and theoretical work, we explore how public policy can strengthen green innovation chains and crowd in private investment. We have also articulated a critical role for central banks and financial regulators to steer finance in alignment with green missions.  

Journal articles 
Working papers

Policy Projects

IIPP works closely with governments, cities, and public financial institutions all over the world to implement market-shaping green policy approaches. By experimenting and co-creating with a range of public and private stakeholders, IIPP aims to transform how knowledge and policy are created and shared, and how global problems are solved. 

Policy reports

Our Voice in the Media

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Read here for more IIPP's contributions to the green innovation public debate

Events Highlights

Our Work at COP26 / Highlights 

Main

IIPP's COP26 Engagement: IIPP busts myths to unlock climate action

 

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Click here for more highlights about our public engagements

 

Contact

Katie Kedward

Research Fellow

k.kedward@ucl.ac.uk

Jose Coronado

Research Fellow

jose.arciniegas@ucl.ac.uk

Olga Mikheeva

Marie Curie Research Fellow

o.mikheeva@ucl.ac.uk