Green Investment Bank, the Budget and RBS

In today's budget Alistair Darling announced details of a £2 billion fund for a Green Investment Bank. We are welcoming the sentiment but are sceptical that the amount will make sufficient impact.

WDM is arguing that public money spent by the Royal Bank of Scotland on financing fossil fuel projects will mean that the Green Investment Bank fund will be 'throwing good money after bad'.

Deborah Doane, director of the World Development Movement said: “A Green Investment Bank is a good idea but we need far more than the £2 billion on offer to transform the UK into a low carbon economy. In order to achieve this, Alistair Darling must instruct RBS to use public money for exactly the kinds of projects it wants to fund under a Green investment Bank, rather than pouring billions from the public purse into companies that are heavily involved in tar sands extraction, mining and weapons manufacturing.

"The government's hands-off policy has allowed RBS to scale back its investment in renewable projects since the bail out and to support fossil fuel companies to the tune of $7.5 billion over the last three years. Some of these companies are heavily involved in tar sands operations that are devastating the rights of Indigenous Peoples in Canada and directly contributing to climate change. This is nonsensical.

"By not aligning the RBS investments with the goals of the Green Investment Bank, the Treasury is effectively throwing good money after bad.