Corporates warn that green bank will need £4-6bnNovember 2010
UK government plans to set up a Green Investment Bank will need to be backed up with at least £4billion (€4.5bn, $6.3bn) over the next four years, a group of big businesses, NGOs and cross-party MPs has said.
The creation of the bank has been a key pledge of the new coalition government, but there are concerns that massive public spending reductions announced last month could starve it of the capital it requires to invest in low carbon economic growth and stimulate what ministers hope will be a ‘green jobs boom’.
Now a statement, signed by companies such as BT, Bank of America Merrill Lynch, Jaguar Land Rover, PepsiCo, Microsoft, and The Co-operative Group, argues that the bank needs to be capitalised ‘by at least £4-6bn over the next four years’.
The signatories predict that over time investment at this level could leverage £100bn more in cash from the private sector. ‘This is the minimum required to ensure the bank fulfils its potential to help make the UK a world leader in the supply and deployment of low carbon technologies,’ they say.
The statement has been drawn up by the Aldersgate Group, a coalition of ‘progressive businesses’, environmental groups and individuals who believe that ‘high environmental standards will be a major part of future economic growth and international competitiveness’.
It is also signed by, among others, WWF, Friends of the Earth, Greenpeace, The Institution of Civil Engineers and The British Private Equity & Venture Capital Association.
It calls on the government to set up a ‘strong, powerful and effective’ bank without delay.
Peter Young, chairman of the Aldersgate Group, said: ‘The recent spending review cannot just be about budget cuts. We also need to restore growth and build a more resilient economy for the future. To achieve this, the Green Investment Bank must be at the heart of the economic recovery, re-powering the economy and creating valuable green jobs throughout the UK where they are most needed.’
He added: ‘Our minimum target of £4-6bn for capitalisation is readily achievable without impacting on the budget deficit.’
Already a member? click here to login