Chris Stark, former head of the UK's Climate Change Committee, has raised concerns that the UK is losing green investment opportunities to other nations.
Speaking to the Financial Times, Stark pointed out that the Prime Minister Rishi Sunak's retreat on net zero targets and the UK's inadequate response to President Joe Biden's Inflation Reduction Act (IRA) are key reasons.
Stark observed a shift in focus among developers and capital markets away from Britain, once a frontrunner in renewable energy, towards more appealing destinations.
Despite the UK government's assertion of attracting £300 billion in low carbon investment since 2010, Stark underscored the importance of initiatives like the IRA in prompting businesses and investors to prioritise green projects elsewhere, notably in the US.
"We are definitely seeing evidence of lost investment to other parts of the world", Stark said, adding that the UK was "not exciting" when it came to green energy.
The UK became the first big economy to set a legally binding net zero target in 2019, but Sunak has since come under fire from across the political spectrum over his climate inaction since becoming prime minister in 2022.
Last September, Sunak scrapped a pledge to force landlords to upgrade energy efficiency in their homes, and delayed the banning of sales of new petrol and diesel cars.
The government failed to attract any bids from offshore wind developers for its most recent round of contract auctions for new projects, indicating waning appetite among investors.
Nevertheless the government said: "Instruments like the contracts for difference (CfD) scheme make the UK an attractive place to invest in green industries, with companies having announced plans for £24bn in low carbon investment since September alone".
CfD contracts help developers secure financing for projects by guaranteeing a price for their power output.
Stark noted the UK was losing "soft power" around the world because there was a view among many countries that Britain was stepping back on climate action.
He said the country was no longer at the centre of global discussions about climate action and was missing out on crucial conversations on other issues.
"Climate is the lens through which we discuss a host of global issues and not being at the table, at least not being perceived to be at the table as amongst the most ambitious countries, is a hindrance to that".
