This report warns that the UK could lose out on hundreds of billions of pounds of vital investment in green energy projects if the Government waters down its plans for a Green Investment Bank. The Coalition Agreement promised to establish a Green Investment Bank and the Chancellor pledged 1 billion to capitalise it in the Spending Review, plus unspecified proceeds from the sale of government assets. But there have been reports of disagreement within Government as to whether it should be a fully fledged investment 'bank' able to borrow money and raise further capital or simply a 'fund'. If the Office for National Statistics (ONS) classifies the Bank as 'public sector' its borrowing could appear on the Government's balance sheet and so undermine its deficit reduction strategy. Evidence presented to the Environmental Audit Committee by energy companies, NGOs and financial institutions suggests that between 200 billion and 1 trillion of private sector investment is needed over the next 10-20 years if the UK is to meet its climate change and renewable energy targets. But traditional sources of private sector capital are only likely deliver 50- 80 billion of investment in green infrastructure by 2025 - leaving the UK with a massive investment shortfall. The report argues that establishing a proper Investment Bank is crucial in order to lever in the unprecedented levels of private sector investment needed. The Committee concludes that, As a priority, The Bank should concentrate on new fledgling environmental investment where the market has yet to be established.House of Commons. Environmental ... As is usual in business practice, they go and talk to their insurers and say, aquot;How much does it cost us to cover off ... The Government have indicated that they wish the Green Investment Bank to be operational by September 2012, with the first investments happening some time after that.
|Title||:||The Green Investment Bank|
|Author||:||Great Britain. Parliament. House of Commons. Environmental Audit Committee|
|Publisher||:||The Stationery Office - 2011-03-11|