The Green Investment Bank Commission publishes report

Establishment of a Green Investment Bank recommended for end of 2010

29 June 2010

On Tuesday the Green Investment Bank Commission (GIBC) published its report on the Green Investment Bank (GIB). The Commission strongly recommends establishing a GIB by the end of 2010. The GIBC suggests that the new institution should function as an independent organisation that acts as co-investor in green projects. The GIBC estimates that over the next ten years £550bn investment in green development is needed to achieve the 2020 emission target. The commission identified specific market failures which it hopes to resolve through the establishment of the GIB:
To raise the necessary capital for the GIB the commission offered a range of options including the issuing of Green Bonds, the establishment of Green Individual Saving Accounts (ISA), a GIB debt fund, or a levy on energy bills. The initial capitalisation could be derived from various sources, e.g. government funding, shareholding by private and state owned banks, the sale of government assets (student loan book, Tote, Dartford Crossing, High Speed 1, airport landing slots, parts of the radio spectrum) and revenues generated from EU ETS auctions. The commission also suggested that quasi non-governmental organisations could be combined in the GIB to provide a central financing unit. Other government funds (e.g. the Carbon Trust, Technology Strategy Board) could also be included in the new GIB. However, their board of directors would have to confirm such a decision.

Read the full report