“The Government seems to have learnt from the experience of the last few years that it will need more than pledges and targets to drive the £700 billion of low carbon investment required to meet our carbon targets over the next two decades”
commented Nick Mabey, Chief Executive of E3G, on the signalling of government interest in establishing a UK Green Investment bank in today’s pre-budget report (PBR).
Buried deep inside the PBR was a potentially radical transformation of the UK low carbon investment landscape; a review of the case for creating a dedicated UK Green Investment Bank. The PBR gave a remit to the new body Infrastructure UK (IUK) to:
“explore, amongst other options, the case for a low carbon investment institution”
IUK will report back to the government in advance of the budget in March 2010.
This proposal follows concerted lobbying over the past year in favour of a Green Investment Bank from a wide range of business and environmental groups. The idea has also been supported by the Conservative Party. A broad consensus emerging is that a UK Green Investment Bank would help reduce the risk of investment in renewable energy, energy efficiency and low carbon energy and transport infrastructure. By reducing risk and effectively facilitating public-private partnerships, a UK Green Investment Bank would speed up progress towards the UK’s carbon targets and lower costs to the consumer and taxpayer.
“The UK is already falling behind other major economies in building a low carbon future. A Green Investment Bank financed at sufficient scale would help us take the lead and meet our climate change targets at the lowest cost. The Government should announce a concrete proposal for a Green Investment Bank in the 2010 Budget”,
Nick Mabey concluded.
1. E3G is an independent, non-profit European organisation operating in the public interest to accelerate the global transition to sustainable development.
2. E3G has been working on Green Infrastructure Bank proposals since early 2009, and published a paper in collaboration with Climate Change Capital.
3. The PBR statement can be found here.
4. Cross-sectoral support for the Green Investment Bank can be found at the Aldersgate Group and the Green Alliance.
5. The Conservative Party announcement on a Green Investment Bank can be found here.
6. For further information please contact E3G’s Chief Executive Nick Mabey.