Green investment banking operations 'should go further'

People in banking jobs are taking stock of the government's move to launch the Green Investment Bank.

Chancellor Alistair Darling announced the scheme which will provide around £2 billion in equity for low-carbon transport and energy schemes in the UK.

However, the Guardian reported that finance and accounting giant KPMG believes that £2 billion falls a long way short in terms of the estimated £400 billion required for future infrastructure.

However, KPMG's head of global infrastructure Andy Chism remarked that it is a good idea that a single government body was directing affairs, especially with commercial markets uncomfortable with such high risk.

Writing in the Evening Standard, Anthony Hilton said the new bank could encourage private investors into low-energy schemes if it succeeds in expanding the UK market.

Mr Hilton also shared Mr Chism's notion that if the risk is shared, it is easier to development schemes such as road improvements nationwide rather than if it was lumped on to a single private backer.

Updated: 25 March 2010.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.