140. First and foremost, the Review has heard of the importance of consistency in the UK's approach to net zero. This means creating a level playing field for all businesses to operate in, and avoiding those with greater commitment to net zero from losing a competitive edge as a result.
141. Significant investment is needed for the transition to net zero to happen. The Net Zero Strategy estimated that additional capital investment must grow from present levels to an average of £50 - £60 billion per year through the late 2020s and 2030s to reach net zero. The CCC has similar estimates. This is considerably more than seen to date, leaving a significant investment gap. While public finance has an important role to play, government's focus should be on crowding in private finance to close the gap. This could create significant growth opportunities for the UK financial sector (see Pillar 3). But to unlock this finance, consistent and comparable data and information on the risks and opportunities as well as firms' transition plans will be crucial. Clear standards for credible transition plans, reporting requirements, classification systems, and labelling of financial products will provide investors and businesses with the information and tools to act. The Review has heard from key voices in the sector how the lack of consistency on financial reporting leads to lack of adoption and consequential constraints to financial flows.
142. Based on the evidence presented to the Review, the key steps the UK must take to deliver this are:
• Incentivise financial disclosure
• Standard setting - transition plans, taxonomy, greenwashing and stewardship
• International alignment, integration of standards and nature