The UK government is considering establishing a Green Investment Bank to stimulate investment in strategic technologies.
Evidence given to the committee suggests the UK will need to raise between £200bn and £1 trillion over the next 10 to 20 years if it is to meet the government’s climate change and renewable energy targets.
Traditional sources of private fundraising are only likely to deliver between £50bn and £80bn, accountants Ernst & Young told the committee.
I would like to see how they justify this approach instead of harnessing market mechanisms to achieve the desired results. At best, it would appear to me that the government is taking on a massive amount of risk, including technology, policy, and market risks, in order to justify the existence of this type of vehicle. As with any investment, taking on risk by itself is not a bad thing if the potential rewards are above risk-free returns. Somehow I doubt that is the equation these people are thinking about.