The Environmental Audit Committee, chaired by Joan Walley MP, has launched an inquiry into Government plans to establish a Green Investment Bank.

The investigation will examine the role that the Green Investment Bank could play and the specific areas it should operate in. The Committee will also explore how possible funding and governance options can maximise the Bank’s effectiveness.

The inquiry follows the announcement by the The Coalition of its intention to create a Green Investment Bank. The Bank is intended to provide some of the £0.5 trillion some independent experts estimate that the UK needs to invest in green infrastructure to meet statutory targets to tackle climate change and increase energy from renewable sources.

The Government will outline its proposals for after the Comprehensive Spending Review in October 2010. The Department for Business, Innovation and Skills ‘Structural Reform Plan’ expects to develop proposals for the Bank by April 2011.

The Committee is interested in receiving written evidence that looks at:

• the significance of any barriers or ‘market failures’ requiring the establishment of a Green Investment Bank, and any risks of not getting this done quickly;
• the objectives and roles the Green Investment Bank should assume, the areas it should operate (and not operate) in, and how its lending and investment decisions should balance green benefits against financial risks;
• the Green Investment Bank’s investment priorities, and whether and how the bank should support and foster areas where the UK has emerging green technology strengths; and
• the funding and governance structures required to create an effective and accountable body, including the role of ‘green bonds’.

The Committee is inviting organisations and members of the public to submit written evidence setting out their views by Friday 15 October 2010.