UK Government invests in £3bn fund for green projects
The Government, alongside international organisations, has launched an ethical fund that will finance green energy projects and help out developed countries. Charlotte Reid has more.
The International Finance Corporation (IFC) and the UK Government will invest in the IFC Climate Catalyst Fund, a fund of funds that focus on providing growth capital for companies that are improving their resource efficiency and creating low emission products.
The UK Government has approved a £50m investment from the UK’s International Climate Fund as part of its Climate Public-Private Partnership initiative. There is another £75m in the fund that has come from the IFC.
Lars Thunnell, IFC executive vice president and CEO, said, “Addressing climate change is a strategic priority for IFC, and private equity is well suited to jump start climate-friendly investment in emerging markets.
“We hope that the fund will help make the business case for these kinds of investment and encourage additional private sector investment into innovative climate projects”.
The UK’s International Development Secretary, Andrew Mitchell, said, “For too long the power of the private sector has been forgotten in the fight against global challenges”.
Investing ethically has taken off as last year saw the trillionth dollar of investment going into clean energy. Chris Huhne, energy secretary, says that UK companies have announced plans for nearly £2.5bn worth of investment in renewable energy in just 2012.
Mitchell explained why ethical investment is important, “Climate change affects us all – but it will hit the poorest the hardest.
“Our support will reduce the risk of investing, helping the private sector to tackle this global problem by investing in some of the fastest growing economies in the world”.
The Government’s Climate Change Risk Assessment report points out the impact that if nothing is done to prevent climate change it will have a significant impact on the UK and the economy. This would see flooding becoming a major threat in the UK, with droughts, more heat waves and more pressure on the country’s resources.
Environment secretary, Caroline Spellman, said the report shows “what life could be like if we stopped our preparations now and the consequences such a decision would mean for our economic stability”.
And this is only what is expected to happen in developed countries.
Last year, a report from the Intergovernmental Panel on Climate Change (IPCC) said that climate change would lead to more extreme weather events and developing countries would suffer the most making some places virtually impossible to live in.
But it isn’t too late.
Take a leaf out of the Government’s book and look at the ethical investment options available. Here at Blue & Green Tomorrow we have profiled a number of ethical IFAs and funds highlighting how your money can protect the future of our planet.
Talk to your IFA to find out what you can do. Don’t have an IFA? Don’t worry, fill in our online form and we’ll put you in touch with an ethical adviser.
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