Policy & Politics Blog

15 December 2010

What I'd like for christmas is a green bank

Today the Guardian reported energy secretary Chris Huhne saying the Green Investment Bank might start life as a mere fund, unable to issue bonds and unable to leverage in the billions of pounds needed for new, green energy infrastructure.

This is at odds with the Prime Minister's unequivocal response last month to the powerful Liaison Committee last month. When asked "is it really, truly going to be a bank" he simply said "yes".

Treasury civil servants say the Bank might add to the UK's deficit. But to delay on these grounds would be blinkered short-termism. The whole purpose of the Bank is to lever urgently needed investment into the UK. The Bank is a core part of the UK's economic recovery, which is the most important element of bringing the UK's deficit down.

A Green Investment Bank is a clear commitment in the Coalition Agreement. It's also essential and urgent to deliver on both economic recovery and the Government's carbon targets. This is too important an issue for the Government to renege upon.

Posted by Simon Bullock | 15 Dec 2010 | Green Economy