Green Investment Bank must not be compromised, say MPs Skip to main content

Green Investment Bank must not be compromised, say MPs

The skyline at the Braes of Doune wind farm in Stirling Traditional sources of funding would be insufficient to meet climate targets, MPs heard

Related Stories

The UK could lose out on hundreds of billions of pounds in green investment and fail to meet climate change targets if the government compromises on its Green Investment Bank, MPs have warned.
The Environmental Audit Committee said the bank must be free to raise additional capital from investors.
The government has pledged to establish the bank with £1bn of capital to fund clean energy and low-carbon projects.
Concerns are growing the coalition could water down its plans.
These also involve placing unspecified proceeds from the sale of government assets into the bank.
The MPs said there have been reports of disagreement within the government about whether the Green Bank should be a fully-fledged investment bank, with the ability to borrow money and raise capital, or simply a fund.
There are concerns that if the Office for National Statistics classifies the bank as public sector it could undermine the government's deficit reduction strategy, the committee said.
"Setting up a Green Investment Bank without the power to borrow would be a bit like trying to buy a house without first getting a mortgage offer," said Joan Walley, chair of the committee.
"George Osborne has got the deposit, but if he doesn't allow the bank to raise extra capital, the sums are going to fall far short of what is needed."
'Significant' Business Secretary Vince Cable said he also wanted the Green Investment Bank to grow into a "significant institution", which would help to promote economic growth.
"We agree with the committee that the Green Investment Bank should be an enduring bank, which takes investment decisions at arm's length from ministers and be able to reinvest the proceeds from its investments."
He said his department was looking at european state aid rules and would announce its plans for the bank's role by the end of May.
Environment campaign group Greenpeace called on the government to act sooner and outline its decision in the Budget later this month.
"A clear announcement is needed at the Budget so investment can start to flow into Britain's clean energy industries, which would drive the sustainable growth and jobs that are so badly needed in our country," said executive director John Sauven.
'Massive potential' Evidence given to the committee suggests the UK will need to raise between £200bn and £1 trillion over the next 10 to 20 years if it is to meet the government's climate change and renewable energy targets.
Traditional sources of private fundraising are only likely to deliver between £50bn and £80bn, accountants Ernst & Young told the committee.
"A proper green investment bank... is the shot in the arm the UK economy needs," said Ed Matthew of campaign group Transform UK.
"The only cost the Treasury should consider is the cost of failure to unleash this institution's massive potential to re-power our economy."
The previous Labour government committed the UK to reduce its carbon emissions by 80% on 1990 levels by 2050, and for 20% of all electricity consumption to come from renewable energy sources by 2020.
The coalition government has said it backs the targets.
Most scientists agree that without dramatic reductions in carbon emissions, global temperatures will continue rising to dangerous levels.
The direct and indirect impacts of these higher temperatures, research suggests, could cost the global economy hundreds of billions of pounds a year.

http://www.bbc.co.uk/news/business-12704502

Comments

Popular posts from this blog

Chronology of the Press in Burma

1836 – 1846 * During this period the first English-language newspaper was launched under British-ruled Tenasserim, southern  Burma . The first ethnic Karen-language and Burmese-language newspapers also appear in this period.     March 3, 1836 —The first English-language newspaper,  The Maulmain Chronicle , appears in the city of Moulmein in British-ruled Tenasserim. The paper, first published by a British official named E.A. Blundell, continued up until the 1950s. September 1842 —Tavoy’s  Hsa-tu-gaw  (the  Morning Star ), a monthly publication in the Karen-language of  Sgaw ,  is established by the Baptist mission. It is the first ethnic language newspaper. Circulation reached about three hundred until its publication ceased in 1849. January 1843 —The Baptist mission publishes a monthly newspaper, the Christian  Dhamma  Thadinsa  (the  Religious Herald ), in Moulmein. Supposedly the first Burmese-language newspaper, it continued up until the first year of the second Angl

Thai penis whitening trend raises eyebrows

Image copyright LELUXHOSPITAL Image caption Authorities warn the procedure could be quite painful A supposed trend of penis whitening has captivated Thailand in recent days and left it asking if the country's beauty industry is taking things too far. Skin whitening is nothing new in many Asian countries, where darker skin is often associated with outdoor labour, therefore, being poorer. But even so, when a clip of a clinic's latest intriguing procedure was posted online, it quickly went viral. Thailand's health ministry has since issued a warning over the procedure. The BBC Thai service spoke to one patient who had undergone the treatment, who told them: "I wanted to feel more confident in my swimming briefs". The 30-year-old said his first session of several was two months ago, and he had since seen a definite change in the shade. 'What for?' The original Facebook post from the clinic offering the treatment, which uses lasers to break do

Is 160 enough? One Indian man's family

By Sumnima Udas , CNN October 31, 2011 -- Updated 0857 GMT (1657 HKT) Ziona, center, with his has 39 wives, 86 children and 35 grandchildren in rural Baktwang village, India. STORY HIGHLIGHTS One man in India is the patriarch of a family of 160 in rural India Ziona, who only goes by his first name, has 39 wives, 86 children and 35 grandchildren. Ziona's father, Chana, founded the Christian sect in Baktwang that promotes polygamy "I never wanted to get married but that's the path God has chosen for me" Mizoram, India (CNN) -- The world's population hits 7 billion this week, but Ziona, the patriarch of what may be the biggest family in the world, is not bothered. "I don't care about overpopulation in India ... I believe God has chosen us to be like this (have big families). Those who are born into this family don't want to leave this tradition so we just keep growing and growing," he says with a smile. Ziona, who only goes by his f