Private Sector Still Skeptical Over The United Kingdom’s Green Investment Bank

As the United Kingdom moves deeper into the first phase of establishing its first ever Green Investment Bank, many in the private sector are still skeptical over whether it will really have any substantial benefit for the country.

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There is a lot of concern from potential investors over the bank’s long-term funding ability. Andrew Raingold, executive director of the Aldergate Group, an alliance of political and business leaders, believes that the bank should be able to “borrow from the start” and have “the power to raise revenue by issuing its own green bonds.”

Raingold wants to see a growth plan which ensures that the UK has a “more balanced economy that makes things instead of imports them,” adding that, “This would put the bank at the heart of the chancellor’s plan for growth and not wait until the UK is overtaken in the key green industries by competitors.”

In its 2011 budget, the UK government has already committed to fund the bank with £3 billion ($4.86 billion) until 2015, according to the country’s department for business, innovations and skills. The bank will be capitalized to an extent that it will not need to borrow money before the 2015/16 fiscal year.

To speed up progress, the government plans to make direct, state-aid compliant investments in green infrastructure projects until April 2012, until these investments can be transferred to the bank.

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The United Kingdom's Green Revolution Stalling?

While the global recession has cut jobs across every industry in all countries, one of the worst hit has been the environmental sector in the United Kingdom, according to the Environmental Data Services’ latest report.

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David Carr, the report’s assistant editor, finds that “public spending cuts and a sluggish economy are now hitting green collar jobs, but some growth is expected.”

Growth prospects in green jobs are most likely to be seen in legislation-driven sectors such as waste, energy, efficiency, and sustainability – especially those areas related to carbon reduction.

Despite this, major job losses are under way at government departments and councils across the country. “Environmental roles are not being spared the axe,” says Carr.

Experts are blaming economic weakness, public spending cuts, and a lack of policy clarity for undermining the UK’s progress towards a greener economy.

The report finds that, “The public sector is being particularly hard hit. More than three quarters of those in public administration roles said their organization’s environmental employment levels are falling.”

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