24 Mar 2010 03:03:10

Chancellor announces green investment bank

The chancellor has announced plans to set up an investment bank that will fund green transport and renewable energy projects.

In his 2010 Budget speech in the House of Commons, Alistair Darling said the fund would control £2 billion worth of equity for low-carbon investment.

He said that the UK must take long-term decisions to secure its energy supplies while at the same time moving to a low-carbon economy.

The green investment bank would help to facilitate this, with half of the money coming from the sale of assets such as the Channel Tunnel rail link and the rest being matched by the private sector.

Mr Darling confirmed: "The fund will focus first on investing in green transport and sustainable energy, in particular offshore wind power, where Britain is already the world leader."

He also announced that £60 million would be set aside for the development of ports to host offshore wind turbine manufacture.

Also in the Budget, the chancellor said he would provide £100 million locally to repair roads damaged by the cold weather this winter and £285 million to fund motorway improvements aimed at reducing congestion.

http://www.hm-treasury.gov.uk/budget2010_speech.htm