Green investment bank announcement welcomed

The creation of a new green investment bank to encourage spending that will help the UK move to a low-carbon economy has been welcomed by one environmental group.

Alistair Darling confirmed the decision in this week’s budget and it was met with approval by Green Alliance associate Chris Hewitt, who said the body is ’very pleased’.

The bank will be given £2 billion of equity to invest in projects such as sustainable energy and green transport improvement, something it is hoped will encourage more corporations and individuals to carry out socially responsible investing in this area.

He explained that while the money won’t ’transform’ the economy to a low-carbon one, ’it is a very good starting point and it gives us a basis on which to raise more capital in the future’.

Half of the £2 billion equity will be generated by sales of assets such as the Channel Tunnel rail link, with the remainder being sourced from private investment.
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