Contributing to the low-carbon transition in emerging economies

ICF was commissioned by the Cross Government Prosperity Fund to scope where the UK could contribute to accelerating global low-carbon energy transition, leveraging areas of deep expertise and commercial strength. This study analysed the areas where the UK is best-placed to deliver on these aims, and where new market opportunities could be created and realised.

The findings demonstrate that UK companies have leading capabilities in green finance, technical and business services. These services are essential to help develop low-carbon markets and support clean energy and sustainable infrastructure projects. The UK's expertise in smart energy is important, given the anticipated growth of the sector in emerging markets in the short-medium term. For estimating potential commercial benefits, ICF has created a model to quantify UK exports for low-carbon related services. The modelling indicates that UK market access could be worth £2.5-£3.2 billion by 2020 and possibly £12.5-£16 billion by 2030 across key emerging economies. This assumes modest increases in the market size and the UK market share of low-carbon services in nine of the largest emerging markets, as a result of reform initiatives. ICF has provided recommendations to overcome key barriers and help UK companies support low-carbon development in relevant markets. These interventions will help:

• Develop the conditions for clean energy and sustainable infrastructure
• Connect with the right actors for bold propositions and meaningful collaboration
• Secure trade deals through practical steps and government support

As part of this study, ICF has engaged over 70 stakeholders from the private sector, government, trade associations and academia. ICF acknowledges the support of the UK Cross Government Prosperity Fund in the production of this report.

Download the report to learn more about the UK's low-carbon capabilities, the potential commercial benefits over the next 10 years and understand how to overcome barriers in emerging markets. 

For questions, please contact Neal Mehta.