Environmental legislation: Coalition agree to green bank

The Conservative Liberal Democrat coalition agreement to create a green investment bank has been received well by environmental groups.

In the coalition agreement released on Tuesday (May 11th), both parties voiced a commitment to reduce climate change by creating a bank to support investments in green energy.

Chief executive of UKSIF, the sustainable investment and finance association, Penny Shepherd said: "A green bank would play an important role in finding investment for the large-scale infrastructure projects that our country needs."

Other commitments to the environment in the agreement included the establishment of a smart grid and the maintenance of energy performance certificates.

The aim is to fulfil ambitions to build a low carbon and eco-friendly economy.

Ms Shepherd added: "We also hope that Green Isas will form part of the agenda, encouraging people to invest both to make money and make a difference."

A coalition government was formed between the two parties after last week's general election failed to conclude a majority vote (326 seats) for any of the parties.

The Conservatives won 306 seats, Labour received 258 and the Liberal Democrats 57.

Posted by Claire Manning