Accelerating Green Infrastructure Financing: Outline proposals for UK green bonds and infrastructure bank

This March 2009 paper from E3G argues that low carbon markets in renewable energy, energy efficiency and infrastructure have the potential to be a major building block for UK economic recovery and future growth. However, the 2007-2009 financial crisis slowed growth in many of these sectors, with the renewable energy sector in particular seeing many viable projects stalled. Without a coherent UK green financing strategy it is unlikely that the private sector will be able to deliver the necessary investment to meet UK targets and realise the potential for economic growth and job creation in these sectors. A green financing strategy would combine targeted interventions in the short term stimulus period with new policies and mechanisms to support rapid medium term expansion from 2010-11 onwards. This would have three main elements: short term support for renewable energy investment, Green Infrastructure Bank, and raising new finance through green bonds.