The Green Investment Bank

There’s no denying that when it comes to the much-heralded Green Investment Bank, it isn’t short of an initial investment.

Indeed, in Wednesday’s budget, Mr Osborne was quick to commit an additional £2bn of capital, to the £1bn that already sits behind it.

These are serious sums of cash and in this respect; the government’s commitment to the sector should be applauded.

However, that’s not the whole story. As at the moment, the Green Investment Bank isn’t a bank at all. It’s just a rather large government fund.

Why? Primarily because it doesn’t have the authority to borrow.

The government has already said that this authority won’t be granted until it has tackled the deficit and best case scenario, that means that permission is unlikely to be granted before 2015, at the earliest.

However, to delay a decision risks undermining the very reason behind the initiative. As establishing an investment institution is critical to the UK. Particularly if it is to attract the significant level of private sector investment that is needed in order to hit our climate change and renewable energy targets.

The Environmental Committee's recent second report into this area does go some way towards spelling this out but without the voice of industry executives behind it, it unlikely to go far enough.