United Kingdom

United Kingdom

'Green' bonds and banks - Tory plans to stimulate wind energy

UK: The Conservatives are planning a series of financial initiatives, including a 'green investment bank', to help Britain meet carbon emissions targets if the party wins the upcoming election.

Rebuilding Security: Conservative plans for UK energy generation
Rebuilding Security: Conservative plans for UK energy generation

The Conservatives, who currently look likely to form the next government, are looking to stimulate investment in both wind and nuclear energy at the expense of coal and gas-fired power stations.

Speaking to The Times, Greg Clark shadow energy minister said: "We believe the time has come to establish new financial mechanisms to make it easier for people to invest. At the moment it's too difficult."

The policy forms part of a newly-published Conservative policy document "Rebuilding Security: Conservative Energy Policy in an Uncertain World." It is set to be launched this morning by Conservative leader David Cameron.

New measures would include a ‘green' bank set up along the lines of Germany's government-owned KfW Bankengruppe, which invested an estimated €20billion in environmental projects in 2009.

The bank would form an umbrella for the UK government's current renewables bodies The Carbon Trust and the Marine Renewables Deployment Fund.

Other innovations would include the launch of bonds to help finance energy projects of up to €200million. The bonds would take the form of tax exempt savings funds, which would be linked to renewables projects. The Conservatives would also exempt wind and nuclear electricity from a new power generation tax.

Yesterday the UK government announced plans to increase R&D funding for offshore wind farms. David Kidney, minister for energy and climate change, announced the government would be adding an extra £4.8million to fund offshore R&D while opening an offshore training facilty in northern England.

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