The Green Investment Bank - Environmental Audit Committee Contents

Supplementary written evidence submitted by David Paterson, Head of Corporate Governance, The National Association of Pension Funds Limited

1.  How should Government/Green Investment Bank combine the very different skills of finance and green technologies into a single organisation?

  • How should the Green Investment Bank attract the best expertise from the finance sector?
  • Should a Green Investment Bank be able to offer bonuses in the same way as commercial banks?

2.  What (if any) bridging role would you like to see the Green Investment Bank adopting, whereby investors and financial markets might be able to shape Government policy on the various initiatives that might affect green infrastructure investment?


1.  We suggest that the Green Investment Bank should focus on developing the necessary financial skills, building on the project finance expertise which already exists in London. Such an approach fits with the idea that its primary role will be to raise capital for infrastructure projects where that capital has been hard to attract in the private sector. It is hard to see how the full range of green technology expertise can be developed in the GIB, so inevitably it will have to make use of consultants and other specialists when evaluating technical aspects of projects.

The Bank will compete with the private sector for the best expertise (some of which may be available on secondment in the early years) so it will have to offer employment packages which are market-based, including bonuses.

2.  We believe the Bank can play an important role in educating investors as to the opportunities and reflecting investor issues to Government. However it should reflect carefully on whether, given its ownership/sponsorship by Government, it can act as an effective lobby for the finance sector rather than an "expert witness" on green issues.

6 December 2010

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