New Incentives to encourage investments in renewable energy
Britain will need £200 billion pounds to reach emission targets by 2020
Over the next decade, Britain will need £200 billion pounds is needed to reach its low-carbon energy investment.
The European Union is legally binded by the Kyoto Protocol to reduce their emissions by 20 per cent from the levels of the 90’s by 2020.
Since the launch of the Green Investment Bank (GIB) in 2012, it had an initial 3.8 billion pounds worth of capital to help incite investments into energy efficiency and renewable energy’s.
Yet, it has been estimated by (GIB) that the very minimum of 200 billion pounds is required to be invested in low-carbon infrastructure over the next 10 years to replace old nuclear and coal power plants as well as upgrade the grid.
Due to stricter banking regulations and in the wake of 2008 financial crisis, banks have become more cautious charging more for their capital and less enthusiastic to offer long-term loans, something many renewable energy projects are dependent on.
However the government has embarked on a sweeping reform of its electricity market, introducing incentives for renewable investment through new mechanisms.
The government are preparing to reveal its renewable incentives by 2030 and confirm that the GIB will have the power to borrow from 2015-2016, the committee said.
