Britain Needs £1 trillion to meet its Climate Change Bill Agreements

If England is to meet its 2030 Climate Change Bill agreements it will need 1 trillion in investments to turn the country’s infrastructure green. Nothing less than £50bn in investments every year will be required.

According to Bob Wigley, Chairman of the Yell Group and member of the Green Investment Bank Commission, stated that the work needed was “on a scale not seen since reconstruction after the Second World War.”

Mr. Wigley’s statement is based on a report commissioned by the Labour Party in 2009.  The report is in other words a blueprint of how the Green Investment Bank (GIB) will need to be set up to attract investments in low carbon energy generation from the public and private sector.

The GIB will need to have a social purpose and create income streams for investors.  It’s job will be to raise the necessary equity and debt finance to fund nuclear power stations, wind farms, smart grids and all the other paraphernalia of a low carbon future that the private sector is currently failing to do.

Right now UK energy markets are not doing a good job in signalling investment opportunities.  One of the main purposes of a Green Investment Bank will be to take the existing money paid into energy and infrastructure together with other funds, such as the new bank levy or a levy on consumers’ energy bills which could then be securitised, to create large pools of investment funding.

Investment banks have earned a poor reputation over the years due to bad administration issues.  First and foremost for the GIB to succeed it will need a strong and clear governing body with the discipline and commercial knowledge of the private sector blended with the Government strictness.

The Labour report estimates that a Green Investment Bank could raise about £12bn a year by issuing green bonds and from green ISAs, and take control of existing Government grants, such as those currently managed by the Carbon Trust.

Getting the GIB’s governance right will the corner stone of this whole operation, because no self respecting investor will commit funds to a bank, or its products, that are subject to political interference.

Chris Hurcombe one of our leading energy consultants said he envisages the GIB as an independent institution that reflects the status of the Bank of England – independent but regularly accountable.  But it will have to accept political presence and some times interference on its board, given that the issues involved around a Green Investment Bank are related to the execution of national policy.

According to Gregory Barker, the Energy and Climate Change Minister, the Coalition will take for granted the Labour study findings but no decision will be possible until after the Comprehensive Spending Review in October 2010.

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3. Britain Needs…

   Who has to pay for this investment, probably use the bill payers of these energy companies. It all seems to be about profit these days, so as these companies get bigger and bigger, they just pass any costs like this on to you and me, their customer….

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4. 1 trillion to meet its Climate Change Bill Agreements…

   The UK electricity network is in most cases dated back to the 1960′s and as such needs significant investment to bring it up to speed. In certain areas of the UK the network is that bad that it is more prone to power cuts, like the recent ones in Lond…

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6. Britain Needs…

   Who has to pay for this investment, probably use the bill payers of these energy companies. It all seems to be about profit these days, so as these companies get bigger and bigger, they just pass any costs like this on to you and me, their customer….

   Trackback by smash-up.com — October 31, 2010 @ 11:24 pm

7. Trillion to meet UK Climate Change Bill Agreements…

   Where will the funds come from for this, probably on the customers bills thats where. They should be made to invest a percentage of profits each year into the network, other than going out and buying other energy companies in other countries. Why not f…

   Trackback by smash-up.com — November 6, 2010 @ 9:09 am

8. Trillion to meet UK Climate Change Bill Agreements…

   Who has to pay for this investment, probably use the bill payers of these energy companies. It all seems to be about profit these days, so as these companies get bigger and bigger, they just pass any costs like this on to you and me, their customer….

   Trackback by smash-up.com — November 19, 2010 @ 6:18 pm

9. Britain Needs…

   Where will the funds come from for this, probably on the customers bills thats where. They should be made to invest a percentage of profits each year into the network, other than going out and buying other energy companies in other countries. Why not f…

   Trackback by smash-up.com — November 20, 2010 @ 10:05 am

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