Bank boss says green investment is a top ‘priority’
BANK’S GOVERNOR EXPLAINS INTEREST
GOVERNOR of the Bank of England Andrew Bailey has told of strong demand to invest in green technology, with one of his key priorities making sure the mechanisms are right to do so.
An influential figure in framing national economic policy, he explained how Covid-19 has dominated the year.
While climate change finance is a priority, he told how he didn’t think it right to factor in green credentials in business bailouts as the pandemic hit as “it was people’s jobs and livelihoods, and we didn’t feel it appropriate to choose between businesses on that basis”.
Mr Bailey said the green recovery was that opportunity.
“We need to emphasise everything we can do to tackle the big risks we face, and act early on them, and of course climate risk is very much one to focus on.
“It is going to be with us after Covid, still there to be tackled. In thinking about recovery from what is the deepest recession for a very long time, I think it is very important that we take that opportunity to address climate change at the same time.
“There are huge commercial opportunities attached to climate change and you are already demonstrating that in your work around the Humber.”
Mr Bailey said the appetite and necessity for green funding provided an opportunity to address weak business investment and productivity issues, but that clear disclosure of risk was vital.
“There is a great demand to invest in supporting climate change,” he said, with pioneering Humber green hydrogen project Gigastack’s technology partner ITM Power securing £135m in a share issue just 24 hours later.
“At the Bank of England we are committed to doing all we can to support and enable that by encouraging and enabling appropriate saving and investment structures.
“We need to see innovation in the way in which investment takes place. There is no question demand for ‘climate change consistent’ investment is rising and we have got to enable that to happen, and that, for me, is a very important priority. It is one of my most important priorities. There is a lot to do on this front, we have had our sleeves rolled up dealing with Covid, and that has got to go on and we will go on, we will tackle these important issues.
“I congratulate everyone who is making so much of this happen around the Humber.
“It is really great to see the determination and the innovation to keep the momentum of the campaign I know you have got on climate change, applying that change and really catalysing change in the Humber towards a net zero economy. Congratulations on the record of change already.”