Green Investment Bank25th March 2011
The Chancellor, George Osbourne annouced an extra £2 billion for the Green Investment Bank (GIB) in the Budget, this is in addition to the £1 billion earmarked for the fund in the Spending Review last year and means that the GIB will begin operation a year earlier than originally planned.
The GIB will not be able to borrow until 2015-16 and will not procedd until the target for dent reduction has been met.
The creation of the GIB as been dubbed a ‘bold step’ by Mr Osbourne, this is probably becuase the returns are long term and can often be too risky for the market.
Caroline Lucas leader of the Green Party called the budget ‘a betrayal of our environment and our future’ on the GIB she said ‘this should have been the key to unlocking the £450 billion in finance for renewable energy needed in the next fifteen years. Instead, by creating a bank that cannot borrow, its impact will be limited to the original £3 billion funding’