The third annual UK Sustainable Finance Conference brought together financiers, business leaders, innovators and policymakers to discuss how to accelerate the transition to a low-carbon economy. Hosted by NatWest and attended by representatives from the energy, mobility, retail, finance and technology sectors, the event focused on a central challenge: how to mobilise capital and collaboration across industries to deliver meaningful decarbonisation while strengthening economic resilience.

Throughout the day, speakers emphasised that climate transition is no longer confined to a single industry. Instead, it represents a systems-wide transformation affecting infrastructure, supply chains, business models and consumer behaviour. The discussions highlighted the substantial economic opportunities in deploying sustainable systems.

Opening the conference, NatWest Commercial and Institutional CEO Robert Begbie remarked that the transition to a low-carbon economy now demands coordinated change across energy, transport, retail, infrastructure, and finance.

He noted that climate risk is increasingly recognised as financially material and unavoidable for businesses and financial institutions alike. With the UK entering what many describe as a decisive decade for climate action, policy frameworks such as the seventh carbon budget and government clean power initiatives are beginning to create clearer signals for investors and companies. However, these signals also bring sharper expectations: businesses must act quickly to align their business model with net-zero goals, and strengthen their resilience to physical climate risks.

For financial institutions, the transition represents both a risk management challenge and a major investment opportunity. NatWest has positioned itself at the centre of this shift, recently surpassing its target of providing £100bn in climate and sustainable finance ahead of schedule. Building on this achievement, the bank is eyeing £200bn in climate and transition finance by 2030 – including supporting credible transition pathways for industries that are difficult to decarbonise, such as heavy manufacturing and transport.

Transition finance was a central focus. While low carbon energy projects continue to attract capital, many industries require substantial investment to adapt existing operations. Experts stressed the importance of credible transition plans supported by measurable targets, transparent reporting, and long-term financing structures. Financial institutions are increasingly expected to guide clients through this process, helping them develop realistic pathways toward decarbonisation.

The transport sector also received particular attention. Mobility remains one of the largest sources of greenhouse gas emissions, but significant progress is underway. Financing for electric vehicles and low-emission transport infrastructure is increasing rapidly, with billions already directed toward fleet electrification and charging networks. Achieving a fully decarbonised mobility system, however, will require coordination across vehicle manufacturers, infrastructure providers, regulators and consumers.

Retail and consumer industries present another set of challenges. Retailers must navigate both decarbonisation pressures and growing exposure to physical climate risks such as extreme weather and resource scarcity. Supply chains are already being reshaped by environmental pressures affecting agriculture, water availability and global logistics. At the same time, consumers increasingly demand sustainable products, although price sensitivity remains a significant constraint. Retail businesses must therefore balance sustainability goals with affordability and operational resilience.

Finally, innovation was highlighted as a key driver of long-term transformation. The UK hosts a growing ecosystem of climate-focused startups developing technologies ranging from advanced materials to carbon removal solutions. Yet moving innovations from laboratory breakthroughs to large-scale deployment requires patient capital and supportive policy frameworks. Financial institutions, venture investors and government agencies must work together to bridge this “commercialisation gap.”

In his keynote address, Oliver Holbourn, CEO of the National Wealth Fund, explored how to mobilise large-scale capital for strategic projects that support economic growth, clean energy, and national resilience.

The organisation operates with roughly £28bn in core capital and aims to deploy between £4bn and £5bn annually over the coming years. However, its ultimate goal is far larger: to back more than £100bn of total investment across the UK economy.

It sounds ambitious, and the key to scaling up lies in collaboration. For every pound invested by the fund, the objective is to attract approximately three pounds of private capital. By sharing risk with commercial investors, the fund seeks to unlock projects that might otherwise struggle to secure financing.

Examples of current initiatives illustrate how public and private financing can work together. Investments in renewable energy infrastructure are helping expand the UK’s capacity for clean power generation. Funding for grid upgrades is enabling the integration of new renewable projects into the national electricity system. Meanwhile, support for industrial decarbonisation projects, such as carbon capture and storage clusters, aims to reduce emissions from energy-intensive industries while protecting regional employment.

The fund has also backed companies developing strategic supply chains for critical minerals and advanced semiconductor technologies. These investments highlight a growing emphasis on national resilience and technological independence in an increasingly uncertain global environment.

Throughout the conference, speakers emphasised that climate action should not be viewed solely as a regulatory burden. Instead, the transition to clean energy represents one of the largest economic opportunities of the century.

To this end, industries related to clean energy are currently growing significantly faster than the broader economy, and employment in these sectors is projected to expand rapidly over the coming decade. Large infrastructure projects demonstrate the potential scale of this opportunity. Investments in grid upgrades, industrial decarbonisation clusters, and housing retrofits are not only reducing emissions but also supporting skilled jobs and strengthening regional economies.

At the same time, these projects highlight the importance of public-private collaboration. Large infrastructure developments often involve complex financing structures and long investment horizons. Government institutions, commercial banks, insurers, pension funds, and venture investors must work together to create financing models that balance risk and return.

The transition to a low-carbon economy cannot be delivered by any single institution or sector. Instead, it requires coordinated action among governments, financial institutions, businesses, researchers and local communities.

Public financial institutions play a particularly important role in this ecosystem. By taking on greater risk than commercial lenders such as technology risk, policy risk or longer investment timelines, they can unlock projects that might otherwise remain unfinanced. Once these projects prove viable, private investors can enter the market and scale the model further.

Regional collaboration is also becoming increasingly important. Investments in infrastructure and industry must align with local economic development strategies. Partnerships with city authorities and regional governments help ensure that projects deliver both climate benefits and economic opportunities for communities.

The concept of a “just transition” was frequently raised in discussions. Decarbonisation should not leave regions or workers behind. Instead, the transition should generate new employment opportunities and support economic regeneration in areas historically dependent on high-carbon industries.

As the conference concluded, participants reflected on the scale of the transformation ahead. Achieving net-zero emissions across the UK economy will require unprecedented levels of investment, innovation and cooperation.

Yet the discussions also highlighted a growing sense of momentum. Financial institutions are increasingly integrating climate considerations into their core strategies. Governments are developing clearer policy frameworks to guide investment. And businesses across multiple sectors are beginning to embed sustainability into their long-term plans.

The path forward will not be simple. Infrastructure constraints, policy uncertainties and technological challenges remain. But the conference made one point clear: the transition is already underway, and the institutions willing to collaborate, innovate and invest today will help shape the future economy of the United Kingdom.

Panel sessions and speakers:

Energy Security in the age of decarbonisation

Moderator: Bruce Riley (Head of Energy Transition, NatWest)

Mark Burrows Smith (CEO, Encyclis)

Julia Pyke (Clean Power Commissioner for HMG & Former Joint CEO, Sizewell C)

Ruairi Revell (Head of Sustainability, Economic Infrastructure, Aberdeen)

lan Hunter (Managing Director, Net Zero Teesside Power)

Enhanced focus on transition finance

Moderator: Caroline Haas (Head of Sustainable Finance Advisory, NatWest)

Amelia Tan (Head of Responsible Investment & Stewardship, L&G Asset Management)

Jonathan Dunn (Vice President Climate, Anglo American)

Alicia Kedzierski (Head of Sustainable Finance, FCA)

Thomas Leys (Investment Director, Fixed Income, Aberdeen)

Vanessa Havard-Williams (Chair, Transition Finance Market Review)

Building the net-zero mobility system

Moderator: Guillaume Fleuti (Head of Large Corporates, NatWest)

Jack Ravenscroft (Sustainability & Carbon Manager, Newcastle International Airport)

Alison Nuttall (Head of Sustainability, Global Affairs, JLR)

Sam Harrison (Director, Private Credit Sustainability Research, MetLife Investment Management)

Donal Handley (Head of Government Affairs & Sustainability, AerCap)

UK retail markets in the transition and adaptation decade

Moderator: Ben Liptrot (Director, Sustainable Finance Advisory, NatWest)

Leah Ramoutar (Director of Environmental Sustainability, Aviva)

Sebastian Leape (CEO, NatCap)

lan Burrow (Head of Agriculture, NatWest)

Tom Tayler (Director of Policy and Finance, Earth Capital Nexus)

From lab to landscape: deploying climate innovations

Moderator: Jenny Edwards (Head of Venture Banking, NatWest)

Allister Furey (CEO, Sylvera)

Beverley Gower-Jones (Founder & Managing Partner, Clean Growth Fund)
Richard Nimmons (Co-Founder & Chief Visionary Officer, Carbon Removers)
Manshu Agarwal (CEO, HutanBio)