Business groups, economists and local leaders have urged ministers to create a “Green Infrastructure Bank” as part of Boris Johnson’s state-led recovery from coronavirus to ensure that efforts to stimulate the economy do not overlook the UK’s climate targets.
The push comes after green groups criticised the prime minister’s £5bn in new infrastructure spending announced earlier this week for being too light on green measures.
“We really need a national investment bank,” said Nicholas Stern, chair of the Grantham Research Institute at the London School of Economics. “It can have a very powerful effect, help bring down the cost of capital, and allow the private sector to come in.”
The rationale is to have a dedicated institution that could help finance climate-related projects that might otherwise struggle to access affordable capital, such as early-stage tech projects.
Lord Stern, who authored the UK’s official report on the economics of climate change