UK Must Spend £110 Billion in Order to Achieve 2020 Green Energy Target

Ed Davey has recently stated that in order to achieve its renewable energy targets and cope with the loss of 20 percent of its current fossil fuel power generation by 2020, around £110 billion must be invested in the green economy. However, he also admitted that “existing players don't have the cash to achieve the UK targets so the UK needs to attract big foreign investors.”

With this in mind the government will invest £100 million, from the UK Green Investment fund, into two specialist investment banks, set with the task of encouraging foreign investors to the UK. Specialist fund managers at Equitix and Development Capital (SDCL) will use the money to attract foreign cash to help fund research into energy efficiency.

Deputy Prime Minister said at British government's Global Business Summit on Energy, that “the fund managers will be actively encouraging domestic investment.”

The carbon sector is already worth £3.3 trillion and is growing at a rate of 4.4 percent per annum. “The biggest and savviest economies are crowding in: China, Germany, Brazil, Korea,” said Clegg, and “the UK is stepping up its game. The UK is the sixth-largest market in low carbon goods and environmental services and this Coalition government is unreservedly committed to helping our low carbon sector thrive.”

Clegg said that renewable energy could provide for 30-45 percent of the UK’s energy by 2030, and whilst vast sums of money are first needed in order to achieve this, Ed Davey is confident that the industry will achieve its targets.

By. James Burgess of Oilprice.com