Three steps forward
Simon Bullock
23 May 2011
Three steps forward...
Nick Clegg's speech today on the Green Economy was great news in the slow but steady progress towards a strong Green Investment Bank.
First, he committed to introduce legislation to set-up the Bank. This is essential to give it operational independence from the Treasury, and also to give investors confidence it will be there for the long-haul, and not be something the Government can get rid of on a whim.
Second, not in the main speech, but very clear in questions and answers afterwards, was that the Bank would have "full, independent borrowing powers" - it will definitely be able to borrow from the capital markets, essential for leveraging in the multi-billions necessary of green investment.
Third, for the first time he said the Government would look at using the Bank to support Green Deal home energy efficiency schemes - the Bank can have a major role in providing low-cost finance so that people can insulate their homes and have lower fuel bills.
So, great progress.
But there's still a long way to go, and there will be many obstacles put in the Bank's path by obstructive forces in the Treasury.
The first rock in the road is that there's as yet no timetable for legislation - the Government needs to spell out there will be legislation by 2012 at the latest.
Also the Bank still cannot borrow until 2015 at the earliest. The CBI, Transform UK, the Aldersgate Group, Friends of the Earth, institutional investors and the Committee on Climate Change have all called on the Government to let the Bank borrow from the outset, so here's to this combined pressure forcing Government into bringing this date forward.
These are two big blocks, but all the same, today's announcements are a blast of green acceleration to the Bank's progress.
A good day for the Green Investment Bank, the alliance of campaigning groups fighting for it, and the progressive forces within the Government
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