Green investment banks – The free market to the rescue?
An independent report commissioned by the UK’s Conservative Party – when they were in opposition – has found that Britain needs a green investment bank in order to meet its emissions goals for 2020.
The report, entitled ‘Unlocking investment to deliver Britain’s low carbon future’ discusses low carbon investment, issuing ‘green bonds’, tax incentives to help clean energy industries and levies on consumer fuel bills.
From a Reuters Africa report:
The scale of the investment required to meet UK climate change and renewable energy targets is unprecedented.
–Green Investment Bank Commission report
The report also states that the bank should be commercially independent and not accountable to Parliament or ministers.
According to an article in the Independent, Europe and the UK have seen a slowdown in the investment in clean energy due to the financial crisis. Utilities industries have also weakened after a dip in energy consumption, which is ultimately a good thing in this situation, is it not?
A similar plan for a green investment bank is gaining momentum in the US Senate, in light of their failure to sufficiently support President Barack Obama’s climate change legislation.
From an article in the Guardian:
Among the measures gaining in support is the establishment of a clean energy deployment administration, or a green bank. The bank would offer direct financing as well as loan guarantees to new energy infrastructure, energy efficiency and manufacturing technology.
Read more about the Conservative’s clean energy plans in the Telegraph’s interview with UK climate change minister Greg Barker.