For too long there has been a void between policy and progress in the renewables sector, with the political will for low-carbon transition unmatched by the financial incentives needed to deliver it.
For small-scale developers it remains very difficult financially to enter into the sector, with significant expense and risk associated with the planning and pre-construction phases.
If the Government hopes to achieve the ambitious targets that we have rightly set ourselves as a nation, it has an important role to play in sharing and reducing that risk and making long-term investment in the UK renewables sector an attractive option.
The CBI Report rightly identifies that the Green Investment Bank (GIB) presents a real opportunity for Government to take this responsibility and be “exposed to low-carbon projects” thus buying into their successful development.
If Government were to guarantee Green Investment Bank Bonds – as the CBI suggests – this would open up a highly effective, low-cost funding stream for the sector, without impacting heavily on the public purse.