The Green Investment Bank’s (GIB) ability to borrow is set to be put back, after George Osborne confirmed that austerity measures will continue for at least another four years.
It was planned that the GIB would begin borrowing in 2015/16 under the proviso that the government reduced its debt as a percentage of GDP, but in his autumn statement yesterday, the chancellor said that the Office of Budget Responsibility had in fact forecasted that debt would increase until 2016/17 – now the earliest possible time that the GIB’s borrowing power will be unlocked.
And many, including the UK Sustainable Investment and Finance Association (UKSIF), are worried that the coalition’s failure to meet its debt target could lead to slower growth in green investment.
Caroline Escott, UKSIF programme director and head of government relations, said the autumn statement “seemed like a missed opportunity to boost green growth”.
She added, “We were particularly disappointed that any boost to the Green Investment Bank’s borrowing powers will apparently be delayed as a result of the new debt forecasts.”
The Association for Consultancy and Engineering (ACE), which in September published a report into the market conditions and challenges that the GIB faced ahead of its opening, echoed UKSIF’s sentiments.
“While the government is keen to reassert its commitment to its deficit reduction, the rules for the Green Investment Bank’s borrowing powers may hurt investor confidence and make it difficult for industry to plan for investment”, said chief executive, Dr Nelson Ogunshakin.
“By linking the new bank’s borrowing powers to a target that government may not be able to hit, industry is unable to plan with any certainty for those borrowing powers to come into force.
“Government should change the rule and fix the date on which the Green Investment Bank can start to borrow so as to provide certainty for industry as it plans to deliver growth through infrastructure investment.”
Like our Facebook Page
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
Tips for Optimal Waste Management in Your Home
The Agricultural Benefits of Weather Stations for Eco-Friendly Farmers
What Makes Online Furniture Eco-Friendly?
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
4 Ways To Build A Sustainable Home
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Why Transitioning Your Company to an EV Fleet Makes Sense?
6 Practices for Sustainable and Eco-Friendly Plant Operations
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy12 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor