In a bid to achieve Climate Change Bill commitments, the Government announced that it will set a £2bn Green Investment Bank to finance renewable energy projects. The revelation was made during this years Budget announcement.

Initially the Government is prepared to invest up to £1bn from the sale of infrastructure-related assets and will then seek another £1bn from private sector investments. This joint form of investment is already in use by Obama and his plans for financing America’s high-speed rail – in both cases, the idea is to use government financing to provide security and to stimulate investment. The Governments role will serve to reduce the risk of such green business ventures that are still viewed as unpredictable.

“The UK’s binding 80% greenhouse gas reduction target by 2050 will only be achieved by huge increases in low-carbon electricity generation, requiring unprecedented levels of investment, including the upfront costs of many low-carbon technologies,” DECC comments.

The news of a Green Investment Bank was received with joy by environmentalists and green campaigners. Doug Parr, Greenpeace Policy Director said:

“Clean technology is set to be the growth industry of the 21st century and this announcement shows that with the right incentives from the Government, Britain could be in pole position to benefit,”

As stated by Lord Mandelson, the Business Secretary, the Green Investment Bank will be a vote of confidence for investors willing to invest in low carbon and renewable energy generation.

Other measures affecting renewable energy and energy in general in the Budget include:

* Launching UK Finance for Growth to streamline £4bn of existing financial support for small and medium-sized businesses, which will include support encouraging businesses to commercialise low-carbon and renewable energy technologies

* £60 million for the development of UK port sites to support offshore wind turbine manufacturers looking to locate new facilities in the UK

* Halving the rate of company car tax for ultra-low carbon cars

* A commitment to reduce Government departments carbon emissions by at least 30% by 2020 and

* A commitment to reform the energy market to provide clean, secure and affordable energy in the long-term.

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1. UK Climate Change Bill commitments…

   This Green Investment Bank should see the continued development of wind farms and more renewable energy sources in the UK. As things develop over the coming years, then we should see new inventions that could eventually lead to brand new sources of ene…

   Trackback by pligg.com — April 15, 2010 @ 11:48 am

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