High interest rates could add billions to UK green energy transition, says report

Resolution Foundation calls for fourfold increase in renewable power investment to reduce pressure on household bills

A permanent shift to higher interest rates could add billions of pounds to the UK’s renewable energy transition, a leading thinktank has warned.

Borrowing costs have soared since the easing of pandemic lockdowns and Russia’s invasion of Ukraine as the world’s leading central banks raised interest rates to tackle inflation – pushing up the costs of investment in infrastructure across advanced economies including for green power generation schemes.