The UK must move ahead with a green bank 'quickly' as it's already falling behind on climate targets, according to an association representing long term financial investors.
British Private Equity and Venture Capital Association (BVCA) made the plea for action has it unveiled 'Energy, Environment and Technology Board' (EETB) a report on the creation of a green investment bank in the UK.
The report argues that a 'well-designed and implemented' green bank could be 'vital' to creating private sector investment support for the UK's 2020 and 2050 low carbon, renewable energy and energy security targets, as well as in creating jobs for the British economy.
Chief executive of the BVCA, Simon Walker, said: "It is clear that to reach Britain's climate change targets market and government forces must come together.
"The low carbon and renewable energy sector, along with much of the financial sector has been beleaguered with regulatory uncertainty.
"Everyone recognises that instability harms investor confidence and drives private capital to other markets.
"What is certain is that private capital should be favoured over public capital to rebuild the country's economy, create jobs and meet our climate change commitments.
"As the private sector has a role to play, so does the government in ensuring a stable investment environment.
"Configured correctly, the Green Investment Bank can achieve this and the work of the EETB outlines the practical considerations needed to do this."
Key recommendations of the report include:
The bank should help attract the private sector capital necessary to deliver the UK's 2020 and 2050 low carbon and renewable energy targets;
It should facilitate and not compete with the private sector;
It should provide value to the UK taxpayer by investing on a fully commercial basis;
It should offer a range of standardised investment products for low carbon projects and companies promoted and vetted by private investors, always investing alongside private capital and targeted to address market failures;
It should be primarily self-funding and able to draw on the capital markets, including the issuance of Green Bonds;
It should provide independent advice to the government on delivering the low carbon economy.
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