Green Investment Bank Commission Report- CCC-E3G joint announcement

Green Investment Bank Commission recommends urgent action to unlock low carbon investment in the UK

Download the GIB commission report.

(London, 29 June 2010) A report published today by the Green Investment Bank (GIB) Commission, a fully independent group convened by the Chancellor of the Exchequer to advise Government, highlights the urgent need for a new public financial institution to unlock the investment needed for Britain to deliver a timely transition to a low carbon economy.

The Commission, which consulted widely with financial institutions, businesses and NGOs, estimates that £550 billion could be required for investment in supply chains and infrastructure in order to meet UK climate change and renewable energy targets between now and 2020. But a number of barriers, notably insufficient capacity in the debt capital markets, perceived risk around policy support frameworks, risk around the new technologies being rolled out and difficulties with financing large numbers of smaller projects, have together made financing low carbon infrastructure at the scale and speed required to meet the UK's carbon targets unachievable without scaled up Government intervention.

The Commission recommends that the GIB be established to act in the public interest to identify and address these market failures and investment barriers over the long term. The GIB should sit alongside the Committee on Climate Change, which advises Government on legally binding climate change targets, and provide financial advice to Government on climate change-related investment issues.

The Commission also recommends that the Bank should rationalise the plethora of existing Government quangos, funds and initiatives that aim to support climate change objectives and by doing so significantly improve the cost-effectiveness of such efforts.

To ensure an independent and enduring institution is established, it will be critical that the GIB is established in Statute with a clear mandate. But continued momentum is also crucial for success and the Commission recommends that the Government appoints a "Shadow" Board to lay the foundations for the new Bank while a GIB Bill is drafted and taken through Parliament.

The Commission has proposed that the primary focus of the GIB should be on lowering risk for investors, rather than simply providing capital. It suggests the GIB could help catalyse low carbon investment by:

James Cameron, Executive Director and Vice-Chairman of Climate Change Capital, as well as a member of the Green Investment Bank Commission said, "The Green Investment Bank can work over the long term in the national interest and will help to build the new clean economy around us. It is a tremendous opportunity to rapidly scale up the investment we need to tackle climate change, whilst simultaneously creating the jobs and industries of our future."

Chief Executive of E3G Nick Mabey and coauthor of the paper that made the first case for the creation of such an institution said "The traditional approach of simply increasing the rewards to investors in the low carbon economy has delivered only a fraction of the investment needed. It is time for a new approach.  The GIB, with its focus on innovative risk mitigation, will send a strong signal to investors that the UK is serious about its low carbon transformation. By unlocking major new streams of investment the GIB will give greater certainty of meeting the UK's climate change targets and give better value for money to taxpayers and energy consumers."

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For more information contact:

Green Investment Bank Commission
Room 11, 4th floor, 33 St James's Square
London, SW1Y 4LE
T: +44 (0) 20 7850 0345
www.bobwigley.co.uk

ENQUIRIES:

Climate Change Capital Ltd

Daniel Cremin          +44 (0)20 7939 5319            dcremin@c-c-capital.com
Denise Cocker         +44 (0) 20 7939 5319           dcocker@c-c-capital.com

NOTES TO EDITORS

Since February 2010, the Green Investment Bank Commission, an independent and non-partisan advisory group brought together by the Chancellor of the Exchequer, has been working to develop proposals for a Green Investment Bank (GIB) that could help increase investment in the low carbon infrastructure and technologies.

The members of the Green Investment Bank Commission are:

The members of the Advisory Panel are:

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