climbdown

Jim Pickard

My colleague Fiona Harvey revealed in October that plans for a green investment bank could be watered down under pressure from the Treasury.

A commission set up by George Osborne to look at the issue – led by Bob Wigley, the former European head of Merrill Lynch – had called for the bank to have powers to raise finance from the private sector, for instance by issuing bonds, green Isas, raising loans and other measures. But this was opposed by Treasury officials, according to Fiona:

They would prefer the bank to operate as a simpler fund, dispensing grants and loans in conjunction with the private sector but without the powers to generate its own self-sustaining financing mechanisms.

And in today’s Guardian Chris Huhne confirms that the bank will start life in the more limited form.

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