NatWest bank has committed to funding £10 billion to the sustainable energy sector by 2020 to help “accelerate” the transition to a low carbon economy.
The bank initially set out a three-year target of £3 billion in 2015 and has supported nearly 1,500 transactions between then and 2017.
The most significant support was given to the solar sector which accounted for 41 per cent of the funding, followed by wind (25 per cent), biomass (9 per cent) and anaerobic digestion, smart meters and energy efficiency projects all at two per cent.
The figures were revealed at the Low Carbon Vehicle Partnership’s (LowCVP) 15th anniversary celebrations in Westminster last week, where the organisation announced its first ever three-year “strategic work programme”.
NatWest in association with finance company Lombard were named as the first financial partners for the group.
Richard Saint, managing director of energy infrastructure and industrials at NatWest, said: “This is a huge achievement, demonstrating our strong commitment to the low carbon economy and the jobs, businesses and communities that rely on it. It also highlights the attractiveness of the UK for investment in the low carbon goods and services sector for British businesses.”
He added: “How we use energy for transportation is changing dramatically– low carbon and electric vehicles are an increasing area of growth and can make a real impact to helping the UK’s ambition to become a low carbon economy.”
Andy Eastlake, LowCVP’s managing director, said: “Our focus on building consumer demand for ULEVs could be strongly supported by leading financial players who have perhaps the most direct influence on today’s markets. We will be beginning our engagement by focusing on the key areas that financing solutions may be able to unblock.”
Eastlake said LowCVP’s three-year programme gives the company “a longer view and greater stability”.
Transport Minister Jesse Norman MP, added the government “is committed to improving air quality and tackling climate change”.
He said almost £1.5 billion over this parliament will be invested as part of the drive to reduce emissions from transport. “The Low Carbon Vehicle Partnership continues to play a vital role in supporting these environmental targets.”