Business secretary Vince Cable has launched the government’s long-awaited green investment bank, which aims to raise tens of billions of pounds for renewable energy projects.
The Liberal Democrat minister officially launched the project at an event in Edinburgh on Wednesday, with money already earmarked for projects in Teesside and south Wales. Dr Cable said the green investment bank was necessary as a remedy to “market failure” and short-termism.
“The bank has an important role to play in an increasingly credit constrained world. Shifting to a low-carbon economy will require significant and sustained investment,” said Roger Salomon, head of business environment at manufacturing trade body EEF. “The challenge now is to start getting funding out more quickly to projects that will both cut emissions and generate jobs.”
According to government estimate, Britain needs to build £110bn worth of new renewable energy and other electricity infrastructure by the end of the current decade. However, investment rates are estimated to be 50 per cent short of the required level for overall climate targets at present.
Earlier this week, Irish Taoiseach Enda Kenny indicated that renewable energy would be a key talking point for the British-Irish Forum over the coming years.