energy lawyer backs green investment bank in Scotland

5th August 2010

A leading Scottish energy lawyer has backed calls for the proposed £2billion Green Investment Bank to be located in Scotland.

Tom Speirs, a partner in the energy & climate change team at national law firm, HBJ Gateley Wareing, backed the call made by Rob Gibson MSP to have the Green Investment Bank located north of the border.

With a target to deliver 50% of electricity from renewable sources by 2020, Scotland not only has the green energy potential and expertise, but has the financial skills and acumen to make it the ideal location.

The Bank will provide the mechanism to roll into a single source the current system of multiple sources of government funding for green investment projects, serving also to leverage in much needed private sector investment.

Last week research by Highlands & Islands and Scottish Enterprise demonstrated the benefits that could be delivered by improvements in energy infrastructure and the contribution key ports could play in building the offshore green energy industry. The report states that a total private and public investment of £223 million would assist the creation of 11 offshore wind manufacturing sites in three regional clusters.

Taken together these sites could support the creation of up to 5,180 jobs and deliver an annual economic impact of up to £294 million each year.

However, the scale of the challenge faced in decarbonising the economy is enormous, with Ernst & Young estimating that it will take £162billion of “clean” energy investment by 2025 to meet the UK’s commitments to cut emissions.

Tom said: “With the green energy potential, high level of expertise in this sector and financial acumen, Scotland is the ideal location for the proposed Green Investment Bank.

“However, while such a Green Bank will go some way to addressing the serious funding gap that exists for capital investment in renewable energy projects, the challenge will be leveraging in much-needed funds from private markets to fill the funding hole.”

It is expected that the UK Government will bring forward detailed proposals on the GIB after the budget spending review in the autumn.

Tom Speirs is a partner specialising in energy project funding within the energy & climate change team.