30 Mar 2010 09:03:11

Green Alliance: Budget makes way for low carbon economy

Chancellor Alistair Darling's establishment of a new green investment bank is a "very good starting point" for the UK to become a low carbon economy.

This is the view of Chris Hewitt, associate of environmental organisation Green Alliance, which comes after the announcement of a £2 billion green investment bank during Mr Darling's Budget last week.

"Two billion [pounds] won't transform our economy to a low carbon one but it is a very good starting point and it gives us a basis on which to raise more capital in the future," commented Mr Hewitt.

Funds from the bank will focus on green transport and sustainable energy including offshore wind power.

As for the future, Mr Hewitt added: "We will be doing a lot more work on environmental taxation after the election and we would be looking for the next Budget, whenever it comes, to look at much more fundamental measures like that."

However he explained that for the pre-election Budget, the Green Alliance had hoped for the creation of a green investment bank, which the government has delivered.