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Green Investment bank needs to push further

A prominent think-tank has suggested the sums the government is committing to the Green Investment Bank are too small, and will make no real impact on the economy.

Gerald Holtham, professor at Cardiff University Business School and managing partner of Cadwyn Capital LLP, suggests that unless there is a collective decision to reduce national dependence on imported energy sources, investment on the required scale will not take place.

The problem, Mr Holthan suggests, is that some of the technologies that will drive alternative energy sources are unproven, despite looking promising.

In his report, entitled The Green Investment Bank: Do It Now, Make It Big, he points out the likely cost overruns in bringing these technologies to fruition.

He proposes that the Government’s pledge of £3 billion would be best used as the reserve to back a guarantee, rather than to make loans.

The report highlights some of the plus-points of the investment bank, outlined in policy announcements so far.

For instance, being at arm’s length from government is noted as essential in facilitating the bank to take technical and commercial risks.

The bank’s ability to tackle issues from a variety of angles is also acknowledged, where as public policy is pointed out to be rigid and unwavering.

Here, the potential to catalyse and harness the ingenuity of the private sector is seen as a key attribute.

This was posted in Bdaily's Members' News section by Tom Keighley .