Green Investment Bank
Supporting the green economy
Green Investment Bank
The Government will provide £3 billion to fund a Green Investment Bank, as part of efforts to make the UK a leader in the low-carbon economy, the Chancellor George Osborne said on 23 March 2011.
He also said up to £1 billion funding would go towards building one of the first power stations in the world with technology to capture and permanently store carbon emissions, to help cut greenhouse gases from electricity generation: Carbon Capture and Storage, "CCS".
The Department of Energy and Climate Change confirmed there would be a second round of CCS projects, with up to four more schemes given the go-ahead, although funding mechanisms had yet to be decided.
And £200 million would go to developing offshore wind technology and manufacturing, and support the upgrade of ports to support the industry.
It is hoped the Green Investment Bank will fund clean energy and low carbon projects, leveraging billions of pounds in private finance.
Financing Renewable Energy
Most forms of renewable energy are cheap to run after the investment of upfront capital expenditure. Although the economics point toward using investment in renewable energy technology, not all organisations have the capital to invest. The Green Investment Bank may be able to help bridge that gap. Government also recognises the benefit to the community of generating renewable heat and renewable electricity without carbon emissions.
See also: Banking on IHT The Merton Rule Ground Source Energy Costs & benefits of IHT
