Britain May Help Credit-Starved ”Green” Projects: Adviser

The British government may have to support renewable energy developments such as new wind farms as the global credit crisis chokes funding for companies, the government’s climate change adviser said on Wednesday.

Adair Turner, who is also chairman of the Financial Services Authority, warned of a drastic shortage of credit to fund schemes which he says are crucial to help Britain meet strict targets to cut planet-warming carbon emissions.
“Would I be confident today that without policy interventions the supply of long-term project finance would be sufficient over the next few years to drive us forward — no I wouldn’t,” he told parliament’s environmental audit committee.

“We will have to see if there are elements of public policy which might be required specifically to support long-term project finance.”

Without state intervention, there will not be enough credit available for long-term projects and investment in “green” energy infrastructure will be delayed, Turner added.

Planet Ark