By Jonathan Williams
“Proposals by the UK’s next prime minister for a greater use of infrastructure project bonds underwritten by the state are a solution where no problem exists, the chief executive of the Pensions Infrastructure Platform has suggested…
For his part, Fergus Moffatt, head of public policy at UKSIF, said May’s mention of project bonds marked a “step change” in the way both Cameron-led governments had approached economic policy.
“If the money raised is going towards green infrastructure, then we would absolutely support that,” he said.
Moffatt said such a focus on green projects could help the UK’s energy trilemma – improving reliability of energy delivery at a lower cost, while reducing carbon emissions.
However, Moffatt noted that May’s speech had only referenced two of the three areas, omitting ways to reduce carbon emissions.
He added that, following the Paris climate change agreement and the UK’s recent carbon budget – which targets a 57% cut in emissions by 2032 relative to 1990 levels – the infrastructure and energy debate would be linked.
Moffatt said he would be “concerned” if no further policies to lower emissions were forthcoming.”