Environmental analysis news: Green investment bank 'a good starting point'

Environmental campaign group Green Alliance has welcomed the government's plans to form a new green investment bank.

Chancellor Alistair Darling announced earlier this week that the institution will control £2 billion worth of equity to finance green transport and sustainable energy.

Chris Hewitt, a spokesman for Green Alliance, said the organisation is pleased at the decision.

"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," he commented.

Mr Hewitt added that although the chancellor has made it clear the money will be used to fund the generation of low-carbon energy, the Green Alliance would also like to see the creation of a smart grid, as well as further environmental taxation.

The Department of Energy and Climate Change last year announced plans to create around 1.2 million green jobs by 2020.

Written by Joseph Hutton