The UK Government announced in March 2010 it was to invest £2billion in a Green Investment Bank however, since the election in May that has been cut to £1billion. It is hoped the bank will raise funds and equity for wind farms, smart grids, low-carbon and clean energy, leveraging billions of pounds in private finance. It won’t actually “go live” for almost 2 years but its hoped staff will be in place by end of next year (2011).
A number of businesses and green groups have warned that some £4 billion to £6 billion is needed over the first four years of the green investment bank, from a combination of public and private sources, to ensure it has enough capital to do its job. But this green bank has to be a bank and not a poorly financed fund that was initially suggested back in March. If it doesn’t have the financial clout, or the independence to do the job, and will end up as nothing more than an ill-equipped quango.
Scotland could benefit from this scheme which aims to deliver thousands of new jobs. This would mean hundreds of millions of pounds being spent in Scotland on projects to generate green energy. Experts estimate that more than 60,000 jobs can be created in Scotland from the renewables industry.
It could benefit even more if the administration of the scheme was based here in Scotland. It would be an ideal site to establish the GIB as there is a long tradition of financial services and, more recently, experience in low carbon investment. There is great potential to harness wave, wind, and tidal energy here and the country is ideally suited to play a central role in the transition to a low carbon economy. Scotland would be a natural home for the new bank.
