Investment Banking | Pros And Cons Of Green Investment Bank

Green Investment Bank has been formed to finance energy projects and low carbon emissions. The bank raise capital for green investments in wind parks, smart grids and other renewable energy projects. The IPF is focused on green technologies are designed to provide an increasing number of jobs and related businesses in the UK. The UK is behind its international rivals, and should take prompt action. Could Green Investment banking is the answer to the needs of the UK 's?

Pro - Green technologies and services market is worth more than $ 3 billion per year. Currently the UK has only about 5% of this market. Germany and France have twice the market share of the UK. Brazil has created half a million new jobs in the promotion of green ethanol, and almost a quarter of a million working in Germany in the green investment sector. Green Investment Bank will help the UK economy recover and help the UK to move towards a low carbon economy and meet its responsibilities to the Kyoto treaty.

Pro - In short, if well-funded from the beginning, the IPF will pay for itself many times. It's a great opportunity to raise funds for projects that are desperately needed to tackle climate change.

Pro "There are too many green sources of funding from the government, which do not coordinate with each other, such as the Carbon Trust, the Energy Technologies Institute and many more. The Green Investment Bank will solve this for the consolidation of projects and the public funds.

Con - There are many outstanding issues with the Green Investment Bank, for example, when funding will come from. The government would give 1 million pounds, with the private sector to match this, but this is in doubt. Maybe it will be financed by green bonds and ISAs, and by adding a tax on energy bills. This problem of financing and structuring of requirements that must be resolved before the bank can function correctly.

With - Even ideas for GIB were successful term, investors are not making any movement, but rather waiting to see how things will work out. The bank has not been clear on what your goals are accurate. It could even become a more public fund with capital being deployed. The business model of the Green Investment Bank as it stands means that will unlikely be able to offer large-scale investments. The bank really needs to align with other financial service providers, and then be able to provide assistance to projects of high risk, high gain of green that is as yet unproven.