Believe it or not, the U.K. government is all set to roll out a "green investment bank" this week--or at least propose the setting up of one in their budget session--to help pursue Britain's aggressive carbon control targets and increase funding for clean tech and wind power projects.
This proposed bank would be funded half by the government and half by the private sector. The goal is obvious. Much of Europe has already led the way in aggressively tackling climate change and pursuing a low carbon economy, and U.K. is a relative latecomer. This bank would ease cash flow, provide incentives for the private sector and reduce investment risk for investors.
Let's return the focus now on America. Would a similar operation work in the still-recovering economy, with the spotlight on job creation? With the health care tussle finally settled, is there enough room right now for the government and the private sector to propose/pursue a similar operation? Let's hypothesize. Some of the benefits are clearly straightforward: First and foremost, it will create jobs by encouraging entrepreneurial efforts in clean tech and alternative energy. Secondly, risk-free investment will increase competitive business strategies, ensuring we have sustainable and viable projects. Finally, by its very "green" nature, this bank might just prod other Wall Street banks that remain on the fence with their sustainable businesses investments, to cross over and begin lending.
See any positives I fail to mention? Or do you disagree and feel what might work in Europe might not work for the American economy? Leave a comment and let's make this a discussion. Or better still, follow In Good Company on Twitter at VaultCSR!
You can read more details on U.K.'s proposed green investment bank on Reuters.
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