Green Investment Bank Will Not Be A Cash Cow For Green Energy Follies
The Green Investment Bank will not be the bottomless pit of money for every new Green fad that the ecomentalists and Greens were hoping for, instead it will be a properly run commercial institution with a profit motive and a share holder, The Treasury, that expects dividends every year.
There was no doubt that once Chris Huhne was gone the Greenest Government Ever mantra would be quietly swept under the carpet, the clearest indication of that was Huhne’s replacement, the man with the charisma bypass operation Ed Davey. Apart from having a brother who is an eco lawyer, Davey is every bit the idiot that Chris Huhne is it’s just Davey is, as Douglas Adams put it “mostly harmless“.
Hopes that the £3 billion Green Investment Bank will encourage development of early stage renewable technologies have been dashed by the man picked to oversee it.
Sir Adrian Montague warned green companies not to expect handouts. The City grandee heading the much-vaunted bank told The Times that it would act like a commercial lender and would not risk taxpayers’ cash investing in areas that the private sector refused to back.
His comments signal a victory over the Department of Energy and Climate Change by the Treasury. Chris Huhne, until recently the Energy Secretary and one of the bank’s most ardent supporters, had been pushing for it to be allowed to make riskier investments. This would have enabled the bank to back a wider range of projects, such as experimental solar schemes, that are a long way from being profitable.
“We are not trying to give soft loans and grants,” Sir Adrian said. “We are not looking to give grants and support in areas where the private sector would not give support. We are looking at the technologies which need the leg-up to be commercial.”
The news was greeted with dismay by the Green subsidy junkies at Business Green:
But the scale of the ambition, compared to the original plans for the bank, is starting to look pretty woeful.
Imagine a Green Investment Bank that could offer Green Bonds to individuals and businesses, providing solid if unspectacular returns while allowing interested parties to play a proactive role in the UK’s low-carbon economy. Yes, accounting rules may mean that it would end up adding to the deficit in the short term, but the boost in terms of jobs, tax receipts and low-carbon growth could be immense.
Adding to the defect in the short term while still pushing the tired old Green lie of lasting Green jobs, affordable energy and economic prosperity, the blinkered Green dream world really has no connection with economic reality, or any other reality come to that.
At this point it is worth looking at the supporters of the Green bank, as usual a picture is worth a 1000 words.
Imagine a Green Investment Bank that could take a punt on early-stage clean-tech projects currently unable to secure commercial financing. Yes, some money would be lost on failed projects, but such a move could also secure the UK’s leadership in areas such as marine energy, carbon capture and storage, and offshore wind.
Business Green and their Green propagandist friends at the Guardian are always condemning bankers for bad investments and the banking crisis, yet with the same dependable hypocrisy that the Greens turn a blind eye to raptors being killed by wind turbines, they now turn a blind eye to bad banking practice, but only as long as it is in support of Green ideals.
Posted on February 21, 2012, in Anthropogenic Global Warming, Church Of Climatology, Climate Change, Global Warming, Green Bank, Green Lies, Green Taxation and tagged Green Investment, No Green handouts. Bookmark the permalink. 1 Comment.