Head of Energy and Natural Resources at KPMG UK, Simon Virley comments on the announcements in the Budget on the new National Infrastructure Bank
Simon Virley comments on the announcements on the new National Infrastructure Bank
Commenting on the announcements in the Budget on the new National Infrastructure Bank, Simon Virley, Head of Energy and Natural Resources at KPMG UK, said:
“The focus of the National Infrastructure Bank on Net Zero and the investment being proposed are very welcome, given the transformation we have to bring about in the UK economy to get us on a path to Net Zero.
“However, the NIB must not simply displace private sector capital. It needs to ‘crowd in’, rather than ‘crowd out’, private lending and investment. That means targeting those parts of the market where there are clear market failures, perhaps because technology is at an early stage, or because of the complexity, or risks involved.
“There is plenty of private capital available for green investments, where the policy and market frameworks are clear. The recent seabed auctions for offshore wind are a good example of that. More clarity on the long-term policy frameworks for other areas, like hydrogen and carbon capture, will help unlock more private sector capital into these key parts of the green economy.”
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