Press Release

Clegg announces legislation to set up the Green Investment Bank & full, independent borrowing powers

Nick Clegg, the Deputy Prime Minster, announced today legislation to set up the Green Investment Bank and “full, independent borrowing powers” to borrow from the capital markets.

The decision was strongly welcomed by Transform UK, the alliance of business, investors and charities who founded the campaign for the Green Investment Bank two years ago and who have been calling for legislation and full borrowing powers as core campaign asks.

As E3G’s Founding Director, Tom Burke noted,

Today’s announcement that the Green Investment Bank will be established in legislation and have full powers to borrow from capital markets was the second blow in a week, following the agreement on the 4th carbon budget, to those mandarins who continue to believe that the PM and the DPM are not serious about making this the greenest government ever.

Ed Matthew, Director of Transform UK said:

Confirmation of legislation and full, independent borrowing powers is a major step forward. It is absolutely critical to ensure the Green Investment Bank is an enduring institution, operationally independent and able to maximize its leverage from the capital markets. It will give a real boost to investor confidence in the institution.

In a big shift on energy policy Nick Clegg also stated that the Government will look at using the Green Investment Bank to support the Green Deal home energy efficiency programme, another key campaign ask of the Transform UK alliance. The Government had previously ruled out a role for the bank but has had a change of heart after concerns were expressed from a wide range of business and finance stakeholders that low cost finance was essential to kick start the programme.

Ed Matthew said:

The Green Investment Bank is the glue that will hold together the Green Deal.  It will reduce the level of subsidy required to make the scheme fly and gives the UK a fighting chance to develop a world beating home energy efficiency programme.

For more information please contact:

Ed Matthew – Director, Transform UK, E3G by phone: 07827 157906 or email: ed.matthew@e3g.org

http://www.transformuk.org