Five artists from Climate Rush were arrested last night after taking stencils and green spray paint to the Treasury on the eve of the budget. Osborne’s face was painted – in green – next to the Treasury’s entrance.

On the masonry next to his face a pre-election quotation reads: ‘a Conservative Government will drive green growth [...] by financing a green recovery’. Beneath it is stenciled: ‘Dear George, WTF happened to the G.I.B?’ Today the Chancellor will announce that the Green Investment Bank will not be allowed to borrow money until 2015.

Broken promises

The Green Investment Bank was a key conservative election pledge in February 2010 (see  http://news.bbc.co.uk/1/hi/uk_politics/8492583.stm). However that promise has been broken. Now the Green Investment Bank will be a fund, of £1 billion, unable to borrow additional capital until 2015.

It is estimated that investment of £270 billion is required by 2025 if the UK is to meet its climate change and renewable energy targets (Evidence presented to the Environmental Audit Committee ( http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-committee/news/report-published-green-investment-bank/)).

A limited fund of just £1 billion until 2015 will not be enough to secure necessary investment required for the construction of a sustainable low-carbon economy and the planned 80% reduction of CO2 emissions by 2050.

In October 2010 a study by Ernst & Young stated that: ‘Only a fully capitalised Green Investment Bank can facilitate the large scale investment needed for the UK to become a low carbon economy by 2025’.

Escalating unemployment

2.53 million people in Britain are unemployed. Countries around the world are creating plans to gain global investment in environmental technologies. A study by the Aldergate Group argues that if the UK were to create a budget for green growth it would help reduce the budget deficit and promote economic growth while creating more jobs ( http://www.greenwisebusiness.co.uk/news/study-calls-for-clear-strategy-on-green-growth-in-budget-2128.aspx).

Additionally, the United Nations Green Economy report (2011) demonstrates that a global investment of 2% GDP in the green economy could greatly increase economic growth while keeping environmental impacts within sustainable limits. It also shows that over 6 years green investment will results in a higher rate of GDP growth than business-as-usual.

A spokesperson for Climate Rush said:

“We need a fully funded Green Investment Bank to catalyse green growth in the UK by creating government backed ‘green bonds’ to attract big investors for transformative change. The UK desperately needs a game-changing injection of private sector investment if we are going to meet our climate change targets and move to a green economy.

“It is time the UK government stood by its promise ‘[to] drive green growth [...] by financing a green recovery’ and to realise that governments are judged by their deeds, not their words.”